It is a common sight to see companies offering payday loans to people with bad credit, stating that it will help them to improve their credit rating. Some people are not sure about this, considering that taking out a payday loan is a bad sign, and could hang with you for many years. However, others consider that it is necessary to get some more repayments and good credit into your score before you start trying to obtain bank loans and credit cards from other companies. Understanding the pros and cons of taking out a payday loan, and how they can affect your performance, is essential if you want to recover from bad credit.

Using Payday Loans to Improve Credit Ratings

Although payday loans are considered to be a very last resort, you might be able to get positive notification for your credit rating by taking out a payday loan and paying it back in good time. Same day loan companies will confirm to the credit bureaus that you have taken a loan and repaid it responsibly.  Some loans companies will then notify credit brokers that you have paid this loan on time, and it will go towards a positive number on your rating. However, not all companies do this. Borrowers should be clear and ask questions about their loan before they take it out, if their sole reason for taking the money is to improve their credit rating.

In short, taking out a payday loan can be beneficial if you manage to contact the right company.

How Payday Loans Can be Detrimental

On the downside, there are some reasons why taking out a payday loan might not be a good idea. Payday lenders may not tall the bureaus that you have borrowed reasonably, and instead will only notify credit rating companies if you default on the loan. In addition, there may be occasions where simply borrowing the money is enough to put some lenders off you, as they will consider you desperate for money. People who are prejudiced against these online loans will often look at your borrowings from such a company as a bad sign, even if you managed the loan successfully, and paid it in full. Therefore, just taking out the loan can have a negative effect on your ability to get bank loans and credit cards in the future.

How the Industry Judges Payday Loans

The idea that you might be affecting your future loans by taking out a UK same day loan at the moment can be very scary. However, it is not completely true that all big lenders will look at a payday loan as a bad thing. In fact, some lenders may not even consider your loans at all when they look at whether they want to let you borrow money from them. Instead, they only look at what you are earning now, and give only a cursory glance at any bad credit histories you may have.

However, other companies will definitely investigate your loans, and decide whether or not they want to have anything to do with you based on your credit history. This is where taking out a cash advance can be a serious problem, because this is regarded as a negative by many lenders. They consider payday advances as the mark of someone who is desperate, and so careless with money that they need to borrow overnight cash in order to manage their finances. Naturally, this can be a big problem when you need serious loans, such as mortgages or vehicle loans.

Payday Loans and Credit Rating

As we have explored here, taking out a payday loan does not have any serious negative impact upon your credit rating (unless you default on the loan), but it can improve it if you look for a lender who will report your prompt payment to the credit bureaus. This is the positive side of payday loans, and how they might affect you in the future. On the downside, payday loans can be regarded negatively by high-street lenders, and this can have a seriously bad effect on your chances of taking out other loans, such as mortgages, in the future.

Banks have recently been taken to task for charging excessively high rates of interest on unauthorised or unplanned overdrafts. This happens when you go into the red due to fees being taken out which exceed the amount you have (because it seems banks can take fees from your account when it would put you into the red, although they can’t do the same for vital direct debits). This causes your account to go into an unplanned overdraft. You will usually see the letters OD to the left of the number. This small amount, sometimes only a few pounds, can push you further and further into debt. Banks can sometimes charge you by the day for this kind of default. You need money, and quickly, in order to avoid being fined even further.

If you find that you have gone into the red through an unplanned overdraft, there are a few things that you can do about it. You can transfer money from another account, covering the overdraft. You can also pay some money from your credit card into the account. Both of these options can sometimes cause problems: the bank transfer can sometimes take up to 3 days, and some do not have the option of a credit card. Rather than rely upon these options, you could consider taking out a instant payday loan – the fast cash advance service offered online. You can get these quick loans in less than 24 hours and in the case of this site Simple Payday within 1 hour, this will stop the fines from gathering momentum.

The nature of payday loans

If you want to clear off an overdraft quickly, payday loans available online are perfect, since they only deal with small amounts, offering as little as £100. This means you don’t have to take out an enormous loan in order to cover a small unplanned overdraft. On the contrary, you can get your online small cash loan tailored to your particular needs, so you won’t be forced to borrow more that you can’t afford. The loan can provide you with a quick and easy way to pay off the overdraft with the money you need, not loans that you will be forced to pay back for years to come. When you need to cover excess fees, taking out a same day cash advance can be the simplest solution to your problem.

Covering the cost

Bank charges have always been big news here in the UK. There have been previous challenges to the level of these charges – unsuccessfully, with countless people left in untenable positions of having their credit rating affected and at some points having their accounts closed down. The fact that these charges are levied at the extortionate rate that they are is a bone of contention for most, and there isn’t a bigger proponent of these than consumer activist Martin Lewis. He is passionate about this particular area of the financial industry and has dedicated a large proportion of his energies towards the banks overdraft charges policy. He guides consumers on ways that they can reclaim sometimes thousands of pounds in unauthorised overdraft charges and this is of course a valid route to take. But for those consumers who are not as far into the unplanned overdraft trap there is a preventative way to avoid the heavy debt and costs. Step forward the cash loan repayable after 1 month and deposited into your account in sometimes less than 15 minutes.

Crisis? what crisis?

Taking out a same day loan does not have to be due to a crisis or a desperate need to stop your bank mounting on more debts. Instead, getting a same day loan online could simply be a quick and easy way to get the money that you need without going through the rigmarole of using other sources – such as pawnbrokers. There are plenty of reasons why taking out a fast loan online could be the preferential solution to your financial needs.

Online lenders of small cash advances no longer require that you provide them with ample evidence of your financial well-being. Instead, they have come to understand that their purpose in life is to provide you with quick, easy loans. While other credit lenders tend to ask that you provide them with a long list of documents, for most online payday lenders you will not have to provide much at all – just your personal information and the bank account you wish the money to be paid into.

All that is required is that the customer have an ability to repay the loan in the form of a regular income. In the UK lenders will also ask that you be a permanent resident and possess a national insurance number. You will not be required to fax over any information such as bank statements, proof of ID or employment details.

Although many people are put off by payday loans due to the high interest rates, the APR shown on this type of credit has long since been declared to show an inaccurate picture. Rather than lending for a year at this rate, which is what the APR measures, the loans will only give you the short term advance for 31 days. The interest rate is in actual fact 25 percent of the loan (which is why the rate is so high), but when you consider that taking out £100 will give you a total repayment charge of £125, you can see that this is not that much different from some bank loans (with 33% APR), or credit cards (with nearly 50% APR).

You pay interest on a much smaller amount, and you also only pay back once. Payday loans online will also allow you to calculate your repayment costs before you take out the loan, meaning that you can see exactly how much you will have to pay for the full term. This is not all. Once the application for a loan is submitted the borrower is then under no obligation to take out the cash advance as they will be instantly redirected to a loan agreement page to confirm that they are happy with all the details of the loan and the arrangements. Nothing is ever hidden and this can sometimes go unnoticed by those interested in a payday loan as they presume once they submit an application there is nothing they can do about it. Customers are always in control, even if they change their mind half way through.

Summary

When it comes to taking out online payday loans, you don’t need to be concerned about borrowing money that you can’t pay back, or even taking out an unsuitable loan. Instead, borrowing a short term cash advance online can be the ideal way to sort out your poor financial situation and stop the banks from excessively charging you for what can be a ridiculously small amount into an unplanned overdraft. Those with poor credit ratings continue to have little in the form of options when faced with this predicament, though if you are facing what can be in excess of £15 per day in bank charges the cost of the same day loan pales into insignificance.

Recent studies have shown that women on average have less debt than men, and also manage their finances better. Despite their reputations as shopaholics and impulse purchasers, it seems that women have statistically lower rates of debt than men, and they are also more likely to pay off loans and credit cards more quickly. This is good news for the financial industry, of course, who are always looking for evidence showing reliable borrowers, but it might not be good news for the male population, unless they can take some tips from the women and start spending less.

Men Buy More Clothes than Women

Something that the studies did show is that men generally outspend women when it comes to designer clothes. While men spend more than £500 a year on clothes, the average woman spends around £300. Men are also more likely to dispose of their clothing before it becomes worn, while women can sometimes make-do-and-mend, meaning that they don’t have to go out and purchase expensive replacements. The same comparison also applies to make-up and skin care, where men will often spend more than £300 on cosmetics, skincare and other personal grooming items, while women tend to spend less than £200. This may, of course, reflect the male tradition of buying perfume for the women in their lives, but it also reflects the growing trend for men to use moisturisers and anti-wrinkle creams in their daily routine.

Women Handle Debt Better

The other significant news that the studies revealed is that while women tend to have a debt of around £3,300, men actually have debts of over £3,400 in general. Since the size of the debts are comparable, this suggests that the statistics have not been skewed by mortgage loans, short term cash loans, or similar. In fact, the evidence reflects the personal loans which each person takes out for other reasons. Some of these loans are also payday loans, which do not reflect an accurate amount of debt overall.

Why the Difference?

People may question why the statistics show that women are better with debt than men. The answer probably lies in the way each sex handles money. Men, while able to selectively buy items such as food and drink, may also spend big on items which they have personally selected. Therefore, they might not buy a bottle of wine, thinking that it is too expensive, but they would be drawn towards the gardening set, car essentials, or other items which are only available in the short term. Women, while they may shop more randomly, are better able to compare prices, and will also take care to bring discount cards and other money-off  items. Women are also more conscious of debt, and therefore are more likely to pay off sums which they owe, perhaps using quicky payday loans to get through a tricky period. Men, on the other hand, are less sensitive to the difference between debt and credit, and this can mean that they neglect to pay off important debts.

These results, are of course, only a generalisation on the state of debt between men and women.

As more and more people seek a way to keeping out of the red between paydays, bridging loans have attracted attention. These loans are very-short-term cash advances, with payment due in a few days, rather than the weeks or full month offered by instant payday loans. These bridging loans are often taken out by people when they need a bit of money shortly before the next payday. The times just before the next wage slip are often the hardest, and taking out a small loan can seem like the perfect solution. However, many people are unsure about how to successfully use a bridging loan, and want to seek alternatives.

Bridging loans are often used by people when their endowment mortgages reach the end of their life, requiring a sudden injection of cash before the next mortgage can be taken out. They are considered to be distress loans, taken out during periods of necessity. As the loans are so short-term, they often have very high interest rates, usually requiring that the consumer provide around 1 to 2 percent of the loan. With a high, mortgage-type loan, this can be very costly indeed.

There are a number of other options which you should consider before you look at bridging loans. Your bank or mortgage provider might be able to offer you a reasonable alternative to the bridging loan, giving you a personal loan for a few months in order to allow you to organise a new mortgage. On the downside, you can be forced to take out the loan for several months, leading to big APR payments which can make the loan much larger than the sum originally needed. In this way, the bank loan is very similar to the bridging loan.

Comparing this loan to an instant cash advance

You might also consider taking out a payday loan online. These loans will only last for a month, at the outside, so you need to consider if you will be in a position to pay back the loan within this time. If you are just waiting for the mortgage to come through, then a payday loan can be the perfect answer. With this type of loan, you will have a short-term cash sum which can be used to tide you over to the next wage day, allowing you to pay off any outstanding sums on your old mortgage, clearing the way to the new loan. You should remember that payday loans are only available for small sums, so they will not cover the entire mortgage, but they can help to cover costs such as outstanding fees, credit checks, or other paperwork necessary.

If you cannot see any way around the bridging loan, then you will need to make sure that you have sufficient sums to pay back the entire amount. As bridging loans have a much higher interest rate, you will need to work this out, and include it in your budget when assessing how much you can afford to borrow.

The Chancellor’s new budget has left many people feeling uncertain about the future, and unsure if they will have enough money to cover their immediate bills. Following the changes announced at the beginning of April, the IFS (the Institute of Fiscal Studies) has estimated that most household incomes will be reduced by £200 or more. This could hit families on low incomes particularly hard, and many of them will not be able to afford simple necessities. This could mean that people living on low incomes could be forced to take out long-term loans, and get into debt. Continue reading…

Roll up, roll up, today is the first full day Simple Payday have been live with their deliciously newly designed site and blog. The new design encompasses both aspects of the online payday loan site and makes the link from the blog to the main lending pages seamless.

Now customers can cruise between posts and pages without any worries of where they exactly are on the site. It is 10X easier to navigate and I think just a little bit better to look at. The new site was in the pipeline since the new year and was meant to be a new launch for the year 2011. This has been somewhat delayed, however, I am pleased to announce the new payday loan site for Simple Payday in 2011.

Different site same high approvals

We will continue to offer payday loans online with a pledge to approve you for a payday loan and if we can’t, we guarantee that we will offer you a payday loan from a partner. The business model has not changed, just the interface in which we do it.

The fact that payday loans are available, to me anyway, is a great thing for thousands of needy people across the UK. When the bank says NO we say YES. Easy really. I do think people often mis-judge or mis-label the notion of a same day loan as a sign of friviolity or irresponsibility. The straight facts are clear to see, banks and other institutions do not want to lend to certain individuals, don’t ask me why, it could be for a number of reasons – history, ccj’s and even a previous tenant at your address having a bad credit history – that’s right not even you!

Getting cash when the vampires are at the door, well not quite vampires though the analogy might be a fair representation, can be a life-saver. Who wants to eat baked beans for 2 weeks or go to bed when the sun goes down because there is no electricity for power? Not me, I want to enjoy my free-time, after all I’ve been working all day, what is the point in living just for the sake of surviving until the next paycheque arrives. We all have to be responsible but sometimes and only sometimes we over stretch ourselves with disastrous consequences.

I remember the time when I was a fair bit younger not having any money for 2 weeks. No doubt I survived but did it stop me from doing what I wanted when I wanted, of course it did. Quite rightly it was my fault, I wanted something I couldn’t afford and rather than save I just went out and bought it, not thinking that maybe in 2 weeks I might be faced with some other extra costs. This was before payday loans online were around and the only way of borrowing money would have been a Q and A session with a bank or paper work to a high street lender from my employers.

Nobody wants any of this, questions, phone calls and verifications on your credit history. None of us are angels, some might be, I’m not I know that for sure. My credit history is far from perfect as most people reading this payday loans blog may also be. If you want a loan, a payday loan online might be the only option – no credit checks and no faxing.

I hated those 2 weeks of being stuck indoors, ok granted I wasn’t eating baked beans in the dark, but if you’d have seen the state of some of the television on at the time I might as well of been.

Payday loans online deposited any day of the week or month. Our automated application means the process is a seamless 15 minute process until you are awaiting your money straight to your bank account.

Use it for whatever you want, we will not ask you such questions and we will never contact your employer. No hidden fees, free 1 hour funding and easy to understand charges – No brainer really.

Everything is now and quick these days, we want it now!! From fast food to fast fashion, the high street is full of this need for instant gratification. It’s understandable really. Why wait when you can get it now? With the sound of this need ringing in our ears we can guarantee an acceptance for new loans – with guaranteed under 1-hour funding for loans of £500, now that is fast! No waiting around, like the times you are forced to endure public transport delays, we’ve got the super shuttle non-stop to the tune of 500 quid. Whatever you need it for we won’t ask, just make sure you read our terms and repayment schedule, and be aware that we’ll want the five-hundred pounds loan back in a month.

With our simple criteria, we make it easy to qualify for a payday loan online, no stress as there is already enough of that around at the moment, with the economy and the state of the UK’s finances we have the opposite approach. Giving you the guarantee of acceptance no matter your previous credit defaults. We realise that getting loans has become harder and even getting an extension to your overdraft has become an impossibility. So even if it’s as little as a £100 loan then you can always rely on us to help you out.