Should prior indiscretions hold you back?
Quick access loans can be a fast solution for residents if the UK in a difficult financial situation. They are offered in-line to your income and offered at a set APR, deposited into your account almost instantaneously. Often the loans are not judged singularly on a persons prior credit history but wholly with such elements as the current circumstances, income and employment taken into account.
- Be over the age of 18
- Have a full-time income
- Be a resident of the UK
Can I take out more then one?
It is not recommended that you ever take out more than one payday loan at a time. Only borrow as much as you need and pay the loan back within the terms set out in your original contract. For situations where you are struggling with debt in the long term, there are free advice services that you can contact, such as the Citizens Advice Bureau or the Consumer Credit Counselling Service, who will offer you advice on getting out of your difficult financial situation.
Who should be using them?
These loans can be great to a large proportion of the population, the problems arise when a borrower has long-term debt problems. This shows a clear lack of understanding about borrowing money. Borrowing money or taking a loan is not designed to cause more trouble to the borrower, but should be approached with care and caution as to your current circumstances and responsibilities.
Borrower’s that understand this and use sparingly, often as an alternative to higher costs of borrowing elsewhere for the same time period, are the those that can benefit from the product. For those with ongoing debt it becomes more complex. All our lender’s screen applications on current financial obligations and just because of poor credit choices previously you may still be eligible for a same day loan.
I don’t have great credit..
However, do not let this deter you, the types of customers that lenders are reviewing come from all credit backgrounds, and as most in the modern day and age do not have a crystal clear credit profile. Loans of small amounts cover most minor emergencies and are perfect as offered for only a short time period. The loan is then repaid on your next payday or an earlier date of your choice. All details of how our loans work is available on the how it works page, also see frequently asked questions to see if they are the right fit for you. All borrowers’ that fulfil the basic criteria are eligible to apply for a payday loan of up to £1000 today!
Banning payday loans altogether
Customers in this situation are already clearly not managing their money effectively, and are far more likely to default on their loans, or fall into a vicious circle of debt. Missing repayments means that the added interest and penalty charges can lead to a customer paying the total cost of their loan multiple times over, and in a situation where a customer could not afford to pay off the original balance in full in the first place – this just worsens an already sometime desperate situation.
Some cash advance companies are unregulated, not us! Meaning the consumer is not protected by the law, and allows the lenders to employ sometimes brutal tactics for getting their money back, leaving customers in severe emotional as well as financial stress.
Step forth the lobbyists
It is with this in mind that many lobbyists have called for bad credit loans to be banned altogether. This has in turn led many in power; including MP’s and the credit advisors Consumer Focus, to warn that this would just lead to high risk customers being forced to turn to illegal loan sharks in order to obtain cash at short notice – a far more dangerous practice than borrowing from well known and regulated services. Consumer Focus have suggested a tightening of the rules surrounding payday loans, making them more difficult to obtain for customers with already quite serious debt problems, making the loans work more effectively and safeguarding the customers taking them out.
Among the rules suggested by Consumer Focus is a limit of 5 loans per household per year. Experts have already suggested that customers should seek financial advice if they need to take out more than three loans in any one year, so this advice would just mean companies would be required to direct customers to independent debt advisers should they reach their yearly limit.
Payday loans companies should also share information between them, preventing borrowers from taking out more than one loan at a time – one of the most easy ways to fall into a debt trap using cash loans. Payday lenders should perform more stringent checks on customers to ensure that they are able to make repayments in full on their next payday, meaning they will not be affected by the high APRs and devastating penalty charges which inevitably lead to the cycle of debt.
Payday loans do fill an essential gap in the financial market, if used responsibly can be a helpful avenue for those with short term financial difficulties and those refused elsewhere because of a bad credit history. If customer’s are aware of the situation they are putting themselves in, and are certain they can meet repayments in full on their next payday, there should be no call for payday loans to be banned. However, and there is always a however in most fair arguments, there should always be tighter restrictions in place and reviews constantly made to make sure that vulnerable customers’ do not get themselves into a worse financial situation just through desperation.