Payday lending is almost as popular in United Kingdom as it is in United States. Payday loans in UK showed high customer satisfaction and majority of the British believes that payday loans have actually helped them a lot while dealing with emergencies of different sorts; it would be safe to say that payday lending procedure is as convenient and simple in United Kingdom as it is believed to be elsewhere.
Defining payday loans
Payday loan is a solution to your entire financial problem that could be solved on short term basis. The amount will then be deducted back from the borrower’s checking account by their next payday.
What is a payday loan used for:
Payday loan is used for dealing with unexpected expenses or any sort of emergency that requires cash almost immediately. Payday loans emergencies include but not restricted to:
- Car emergency
- House Eviction
- Medical emergency
- Utility bill payments
- Any unexpected emergency, non-payment of which will have grim consequences.
How to get a payday loan:
The rules of applying for payday loan in UK is similar to that for applying in U.S.A, the requirements include:
- Above 18 years of age.
- Must have a bank account that is at least 3 months old.
- A regular employment with steady paycheck.
Rules of payday loans:
- According to CFA (consumer Finance Association) the lenders are to limit the rollover to twice.
- Payday lenders are restricted to only two unsuccessful attempt of CPA for repayments.
- It is must for payday lenders to show warning of risk on all financial promotion. It must be mentioned on all kinds of promotional media, including magazine, newspaper, and Television advertisement.
- Finally there should be no hidden fees.
How to get qualified for payday loans in UK:
It is in very rare situations that companies don’t qualify for the application of payday loans. In order to make sure that the lenders qualify you for the payday loan, following cautions must be taken:
- All the documents including payment stubs, proof of bank account (one that has been established for quite some time, at least three months) must be present.
- The bank account must be the one that gets paycheck deposited every month
- The contact information of the borrower himself and the employer.
- The applicant must be a permanent resident of UK and of 18 years of age or above.
- Many lending company limits a certain amount fixed in order to be qualified for the loan. Such as £10,000 per month.
- All documents must be original and credible. If any of the documents is fake or falsified, then the borrower will not be qualified for the payday loan.
- The bank account must not have too much overdrafts. The lenders might disqualify a person with too much overdrawing in the checking account.
- The applicant must make sure to meet all the requirements stated by the law before applying for the payday loan, in order to get qualified.
By following the above rules and tips, a borrower might have no problem in getting the payday loan for their emergency reasons at low interest rates. Aside from that, there’s a lot of awesome payday loans article online which can help you.