Top Ten Reasons for taking out a Payday Loan

Reasons for taking out a Payday Loan in 2013


payday loanMost people rely on the mainstream lenders for unsecured loans and credit cards. But, there are consumers who need the services of the specialist payday lenders. The top ten reasons they would be looking at a short term unsecured payday loan are:


1. Emergency Access to Dosh


It’s sometimes necessary to borrow money to pay for an unforeseen emergency, e.g. car or central heating repair. A lot of people relying on the payday loan providers would have no other way of getting their hands on urgent dosh to pay for the emergency.


2. Short Term Unsecured Borrowing


Other than a bank overdraft or use of a credit card there are no other ways a consumer can borrow money on a short term basis other than a applying through for a payday loan. There are consumers with a good credit record who use a short term payday loan provider rather than their bank’s overdraft facility or their credit card(s). They can borrow for periods of 3 to 30 days.
3. Borrow up to a £1000


Most people with a good credit record would use their bank to either apply for an unsecured loan or request an overdraft facility. They also tend to pay for goods or services using their credit cards. Consumers with a short term need for dosh, who don’t have access to the mainstream lenders, can apply through for amounts from £100 to £1000.


4. Quick and Secure Online Application


This is another reason why people with good credit records have come to to get the best short term payday loans. The process is simple and fast with less than a page of an application to be filled within a very safe and secure online environment.


5. Speedy Online Approval would let the borrower know the result of their application within minutes by email. All approved applications will require the consumer’s bank details in order progress to the fund transfer.


6. Fast Dosh Transfer would get the money to your nominated bank account within 24 hours, but mostly on the same day, as long as it’s a standard bank account.


7. Poor Credit Record


There have always been consumers with a poor credit rating due to financial problems in their past. The specialist short term unsecured payday lenders cater for this niche market very well and contrary to the bad press, they are providing a very good service to people who would otherwise have no access to any form of borrowing and would potentially be pushed to use the unscrupulous ‘loan sharks’.


8. No Credit Check


Many short term payday lenders recommend exclude a credit check in their application process, which is beneficial for both poor credit record borrowers and consumers with no credit history at all who want to build their credit rating.


9. Affordable Interest Rates


Many short term lenders charge very high rates for borrowing small amounts of cash, e.g. £30 payable for £100 borrowed over 30 days would equate to an equivalent APR of 2230%. These types of short term payday lenders have given every short term lender a bad name, but has selected the best payday lenders who have lowered interest rates for payday loans, e.g. £20 interest in 30 days for £100, which equates to 690% APR.


10. Affordable and Responsible Lending and all the associated lenders ensure that all applicants can afford the amount they wish to borrow.

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