Payday loans – the checklist
- Unlike other types of loans, payday loans are usually given to borrowers in form of cash in a very short time period of less than 24 hours. So, what are some of the features that define this type of financial aid?
- Payday loans usually carry no security. Borrowers are normally required to only provide information about their job and monthly income for them to qualify for this type of loan. The fact that this type of loan requires no security makes it stand out as being the best and most reliable in cases of emergencies.
- Payday loans are normally designed for emergencies. Basically, these types of loans are usually availed almost immediately to borrowers who make successful applications. In addition, these types of loans are usually awarded to individuals irrespective of their credit ratings and current financial positions.
- Payday loans usually carry fixed amounts. Many lenders usually offer a minimum of £100 and a maximum of £1000. In addition, nearly all the lenders usually provide borrowers with only one payday loan at one time. This means that you can only get one payday loan at a time.
- Many payday loan lenders usually charge fees rather than interest rates. The lenders usually use this option to hide the fact that the interest rates for this type of loans are usually very high. A payday loan of about £100 for example is normally charged a fee of about £25.
- As stated earlier, getting a payday loan is not that difficult. For you to successfully get a online loan you will be required to provide some basic information about yourself and one or two documents that prove the information you are giving out. Three of these documents include your identification card, your pay slip or a letter of employment and lastly, your bank statement.
- Your Identification card plays an important role of proving that you are actually the person that you claim to be in the application document. Many lenders usually use this document to make follow-ups in different institutions such as the banks before approving an application. In addition, payday loan lenders usually use this document to actually prove that you qualify for this type of loan i.e. you are at least 18 years old.
- Your employment information is equally important and should be attached to the loan application document. Basically, you must prove to the lender that you are in a position of paying for the amount of money that you are borrowing. The best way to prove this fact is to provide details of your employment i.e. temporary or permanent and your salary package.
- Your bank details also play a very important role. Lenders usually use banks to make direct deposits and withdrawals. This being the case, you as a borrower will be required to provide information about your bank. You may be required to send a bank statement or simply a document that shows that you normally receive salaries using the bank account that you have stated in your application.