Payday Loans

Payday loans or payday cash advances are loans made against your salary. Basically, under a payday loan agreement, the borrower must be able to pay the loan back upon receiving their next paycheck, thus the term.
Payday loans are examples of loans for bad credit borrowers, and thus do not require routine credit checks unlike traditional loans. Payday loans are unsecured loans, meaning no collateral is surrendered against the loan amount, and the lender has nothing to seize if the borrower defaults.
How Payday Loans Work?
Simply put, the payday loan lender will advance money to the borrower without regards to the borrower’s credit rating. The lender will only take into consideration the borrower’s income and employment status to determine if the borrower is capable of repaying the money he intends to borrow. The loan amount may vary depending on one’s take home pay, but usually won’t exceed £1000.
Payday Loan Advantages

  • Easy application, which is done online.
  • Same day borrowing.
  • Easy to accomplish requirements.
  • No credit checks.
  • No collateral or guarantor needed.
  • Freedom to use the money in any way you like.
  • Ideal for short term borrowing.

Payday Loan Disadvantages

  • There’s a limit to the amount you can borrow.
  • Can be considered as the most expensive borrowing option for people with bad credit.
  • The length of time to repay the loan is very short, thus if you fail to meet your due date, the loan will roll over on the next payday including the interests.