Payday loans are quick cash advances for UK residents who need money now. When the whole process of payday lending started, customers used to have to go to a land-based store and apply with the lender. Once the popularity of quick cash loans began to increase, lenders started coming up with more innovative ways to get loans out to their customers. Applicants were able to apply by way of telephone or filling out an online application. Now you can get quick payday loans from your mobile phone. Text message payday loans are the most recent advancement in quick loan technology.
How to get a Payday Loan
If you have an emergency and you would like to take out a payday loan, first you have to fill out an online application. Most UK payday lenders operate the same way. You must be a resident of the United Kingdom to apply. You must have a UK bank account to apply. You must also provide important personal information such as your name, address, mobile phone number, employer location, income amounts, and bank information.
The lender will use the information you provide to verify that you are an actual human being whose information is legitimate. They will not check your credit history. That one feature should relieve stress for you. Payday lenders extend loans based on your repayment capability rather than your history. Having a steady job and a significant income increases the likelihood of approval.
The verification process can take as little as fifteen minutes. If you are applying for text loans, the lender will get back to you with a pin number you can use when you are ready to text in your loan request. A traditional payday lender will simply notify you of your approval status.
Payday Loan Conditions
Generally, the borrower must repay payday loans within fifteen to thirty days. The lending institution asks for the debit card associated with your bank account so that they can deduct these funds from you. Every instant cash loan also has an annual percentage rate that can range between lenders.
If for some reason you are not able to repay a quick payday loan, it is not the end of the world, but it will cost you extra money to extend the terms of the agreement. Anytime a lender has to attempt an electronic transaction more than once, there will be administrative fees attached.
Closing the Deal
After the lender approves your application, they will present you with a contract. You will read the terms of the agreement. Pay close attention the annual percentage rate, due date, and any other information. The contract explains the lender’s expectations and your financial obligations.
Once you sign the agreement, you are acknowledging that you have read and understood all terms and you willfully accept them all. You will be expected to make timely payment of the specified amounts. Failure to return the proceeds could result in a bad credit rating and legal issues. However, if you treat payday lenders with respect, you will be able to borrow money in the future.