How Do Payday Loans Work?

If you need to get your hands on some money, then a payday loan can be a quick and convenient solution for a short term loan. But do you know what they are and how it works?

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Irrespective of why you need cash in a hurry, when you need to pay for some work to your car or to fix the washing machine, if it's not pay day and you have no money, then you will need to borrow some money to keep your daily life running.

The payday loan. It's why it was created. To give easy access to small amounts of money for short periods of time. But do you know how they work?

What Are PayDay Loans & How Do They Work?

A payday loan is simply an advance amount of money, designed to help you financially until you get paid. Lenders include, but are not limited to, QuickQuid, PaydayUK and others.

Some PayDay Loan providers allow you to choose amount of money you borrow and the length of time you borrow it for. This gives you more flexibility and will reduce the cost if you repay on time. For example borrowing money for 7 days will be a lot cheaper than for 14 days.

The loan is almost always paid direct in to your bank account, often within 2 hours of your successful application. The repayment of the loan, plus interest and/or loan charge, will then be taken from your bank on the date it is due.

An example of how much extra is taken is that for each £100 you borrow for a month, you will have to pay an additional £25 for the interest and fee - a total of £125.

How Do I Apply?

Applying for a pay day loan is pretty simple. Making sure you can afford it is a different question altogether.

All you need do is to click the "Apply" button (on the right hand side) and then complete the application form fully.

You will be requested to provide some basic personal information such as your contact details and address. You will be advised of their privacy policy and can decide whether you want to receive info on great deals from us.

Then you will need to provide your employment and income information which we need to verify that you will be in a position to pay pack your loans. You will also need to provide your banking details so that we know where your loan needs to be paid to and how to take the repayment.

Accepting the Terms & Conditions

Once you have completed the application we will ensure that you see the terms and conditions of your loan so that you understand how it all works. You are also required to confirm how you will pay back the loan. Once you have read these conditions you are then requested to confirm your agreement.

Compare PayDay Loans makes your application easy to complete as well as easy to understand. If you require assistance we are just a click away.

Why Not Workout What You Can Borrow?

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