There is a lot of controversy surrounding the payday loan business. For those of you who are not familiar with the concept, payday lenders will give you a small amount of cash, usually somewhere between $50 and $500 (sometimes more), in exchange for a post dated check. When your next payday comes around the loan is due in full, principle plus interest. Sounds like a pretty good deal, right? It can be. But along with the good comes the bad. Here are a few things you should know before deciding if a payday loan is right for you.
Payday Loan Fact #1:
Payday loans are easy to get. You have probably noticed that there are as many payday outlets in your neighborhood as there are grocery stores. This means that if you find yourself in a financial pickle you are never more than a few minutes away from a few hundred dollars. And, if you are concerned that someone you know might see you entering or exiting a payday advance location, you have the option of applying online.
It is important to note that some online payday lenders are scams. Because you have to supply the lender with personal information including your name, social security number, your driver’s license information and your bank account number, it is important to do your homework before applying with a lender.
Payday Loan Fact #2:
Payday loans can be obtained by anyone with a steady income and an active bank account. Payday lenders don’t run credit checks so as long as you can prove that you are getting an income from employment or government assistance program or even a pension and/or social security and have an active bank account, you are approved. During the application process you will need to provide proof of your income as well as proof of the existence of a bank account and the names of a few references, but that’s about it.
Payday lenders, like all other lenders, are in the business to make money. This means that they aren’t particularly concerned with your current financial situation or whether or not repaying the loan will result in an even more dire financial situation. It is up to you to take a hard look at your financial situation to determine whether or not you have the ability to repay the loan when it comes due.
Payday Loan Fact #3:
Payday loans have a higher interest rate than most other loan products; however this higher interest rate is generally expressed as a flat rate dictated by the amount of money you choose to borrow. These fees are high but are generally less expensive than two overdraft charges levied by your bank or the long term amount you’ll pay over time with a longer term loan.
While payday loans, when used as intended, are generally less expensive than other types of loans because of their short repayment period, renewing the loan and paying the interest only can result in the loan costing considerably more, even more than a traditional loan.
If you are interested in learning more about payday loans online UK, Blue Sea Payday Loans is a reputable lender. They can help you explore your options and recommend a product that is right for you.
Blue Sea Payday Loans is the leading resource for payday loans online UK . Visit today to get the financial assistance you need fast.