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About payday loans
Do you need to have good credit to obtain a payday loan?
You don’t necessarily need to have an excellent credit rating to obtain a payday loan. All that is usually required is that you are aged 18 or over, have been employed by your current employee for at least 6 months and you are paid on a regular basis into a bank account. You must also have had the bank account for more than 6 months
In the UK you will provide a cheque or debit card details for withdrawal of funds from your account on the repayment day. In the US it is more common to write a post-dated cheque for the amount that will be owed which will be cashed when the loan amount is due.
How much money will the payday loan give you?
Your net income determines the level of money you can usually borrow. The minimum you can borrow is typically around £80 (some lenders do however go lower). The first time you use a company the maximum level they lend you is smaller than future loans.
How long do I have to repay the payday loan back?
In the UK it is where it is quite common to be paid monthly it is typical to be able to borrow the money for up to one month (28 or 31 days).
What interest will you have to pay on your payday loan?
Instead of the usual Annual Percentage Rate or APR typical loans incur, you will be charged a fixed fee by the pay day loan lender. This fixed fee is usually between 15 and 35% of the amount borrowed. This is payable in addition to the amount you initially borrowed on the day you are due to pay back the loan. |
