Payday loans are short-term loans of little amounts of money. You can get these payday loans from high street shops and various internet sites. You can easily access these payday loans but it comes with high interest rates.
There may be some other ways to solve your money emergencies, so you must first acknowledge various aspects of payday loans. If you have already decided to go forward with a payday loan then you can shop around various shops and compare the rate of interest and charges before you borrow.
Here, in this article, we are going to discuss what payday loan is, bad credit payday loans direct lenders in the UK, and no credit check payday loans available in the UK.
So, let’s have a look!
What is a payday loan?
A payday loan is a quick source of cash designed to help people who need money on an emergency basis or to cover short-term expenses. These emergency expenses can involve anything from car repair to payments of bills.
You can apply for most of the available payday loans for bad credit online. Most of the lenders will borrow the money in full and give you the time frame till your next payday to return it.
These payday loans are often known as 30-day loans. Payday loans are quick to go through but come with a high-interest rate. You must be prepared to return the amount whenever your next paycheque lands.
If you are unable to pay back the borrowed amount on your next payday you should be prepared for paying the late payment fees. These costs can make the loan even more difficult to access.
Eligibility for a payday loan:
There are some criteria for qualifying for a payday loan in the UK. But the criteria varied from lender to lender, but usually, you must meet the following criteria to get qualify for applying for a payday loan:
- You must be a minimum of 18 or above age
- You must be a UK resident
- You must have a valid mobile number and an email address
- No recent bankruptcy
- Must have a regular fair income
- Good or fair credit rating
What are no credit check Payday loans in the UK?
Loans without credit checks are usually not possible from most UK lenders. Payday loans also involve some form of credit check. The lenders will carry on the least amount of identity check to evaluate whether the borrower is not bankrupt.
Lenders also perform a credit and affordability check to ensure that the borrower can pay back the cash that they borrow. The fact is that the lenders will perform a soft credit check when they assess your application for the first time.
If you qualify to get a payday loan in the UK, it will involve applying for the exact amount you are going to borrow. For individuals with a bad credit score, or having a negative note on their credit history, a no credit check payday loan will be the best option to improve the probability to get accept the application.
If you are looking for any payday loan that will cover your short-term emergencies and spot any loan without checking your credit, it will be best to pause. Because you must consider that these lenders will not provide similar protection and service as any potential lender.
Credit checks are designed to help lenders to realize whether the customer can repay the borrowed money. Lenders also ensure that the loan will not make any difficulties to the customer. This thing protects the customer as well as the lender both. However, lending money to a customer who can’t afford to repay helps nobody in the long run.
Bad credit payday loans direct lenders in the UK
A direct lender is a lender that offers a range of loans including payday loans. When you apply to any direct lender in the UK, they will verify your application and if your application is accepted then they promptly transfer the money to your bank account.
There are several direct lenders available across the United Kingdom that you can access to get a payday loan online. Some of the direct lenders are:
- Quick LoansExpress payday loans
- Lending Stream
- Fast Loan UK
- One Stop Money Shop
How you can pay back a payday loan?
Usually, the lenders will provide you with up to a month for paying back the money you have borrowed with interest. The most convenient way to pay back your payday loan is through your bank debit card.
When you take the loan you have agreed to the lender that he will receive the money back from your bank account. This is known as Continuous payment authority (CPA).
If you don’t have enough money in your bank account to pay back the loan to the lender on the exact due date then the lender will ask your bank for the whole or a portion of the amount. Charges will also be included for late payment.
But, your lender should not use the CPA more than twice if they have not been able to receive the money from your bank account, also they shouldn’t try to receive a partial payment.
From 2nd January 2015, if you take out a payday loan and repay the amount on time then you should not be charged more than £24 as charges for every £100 borrowed. Also, if you default on the loan then the lender can charge you a default fee of £15.
Do payday loans are available in the UK?
Ans: If you have a poor credit rating then it will be harder to get approved for a loan in the UK. However, there are various loan lending companies available in the United Kingdom that provide short-term loans with interest. Some lenders in the UK provide payday loans to individuals who have poor credit ratings.
Who are the best payday loan lenders in the United Kingdom?
Ans: Some of the top-ranked payday loan providers in the UK are-
- Lending Stream
- THL Direct
- Mr. Lender
What is a payday loan in the UK?
Ans: A payday loan is a short-term loan that lends you money to cover your emergency costs and you need to repay the amount on your next payday. There are also some protocols that the lender, as well as the borrower, need to follow.
If you are looking for a payday loan in the UK, it must be to cover some urgent expenses. There are plenty of payday direct lenders across the UK that you can access online to get approved for a loan. Also, the lending amount you need to pay back on your next payday.
However, some effective protocols lie in the process of payday loans, both the lender and the borrower requires to follow these rules. Here, in this guide, we have provided brief information on payday loans in the UK. Hope, this guide will help you along the way to receive your payday loan and solve your money emergencies.