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Direct Payday Loans – When You Need Cash Fast

In a perfect world we’d all have some cash set aside to cover life’s sudden financial shortfalls. But the world is far from perfect. For many of us there simply isn’t a well-stocked nest egg to tap into when we’re running short of funds. But when a spending emergency strikes you have to act fast and if your savings fall short you need to consider other options.

For many UK residents that option is a payday loan. These short-term loans provide the influx of cash consumers need to cover an unforeseen expense, giving borrowers the financial flexibility they need in a crisis.

What are Payday Loans?

Payday loans are short-term lending products that provide small cash loans to consumers facing a sudden spending shortfall. These loans typically involve relatively small sums of money that are meant to be repaid over a brief period of time.

Originally, payday loans were designed to be repaid out of the borrower’s upcoming pay cheque. This kept the repayment window extremely tight, usually between 2 to 4 weeks. Naturally, the repayment customer would be expected to repay the original loan amount as well as any fees and interest within that brief period.

Recently, the Financial Conduct Authority (FCA) has moved short-term lenders away from the old payday loan model. Today, payday loans feature less restrictive repayment schedules. In most cases, the loan is scheduled to be repaid in full over the course of a few months. This change has helped to make payday loans more effective, affordable and manageable for consumers. Our payday loans can be repaid between 1 and 36 months thus making them highly flexible.

What Can You Do With a Payday Loan?

Unlike conventional loans, the cash you receive from a payday loan is not earmarked for any specific purpose. It can be used to cover a variety of normal household expenses that simply can’t wait until your next pay cheque arrives. A timely payday loan can help you cover unexpected household expenses, avoid late fees on bills, and avoid a costly overdraft.

Some of the most common uses for a payday loan include:

• Credit Card Bills
• Utility Bills
• Seasonal Spending (Christmas, Chanukah, Birthdays, etc)
• Travel Expenses
• Medical Emergencies
• Rent / Mortgages

Can I Apply for a Payday Loan Online?

As a potential borrower, your credit history is your most valuable asset. Any lender, conventional or alternative, will consider your credit rating before approving a loan. But this doesn’t mean that a poor credit score is necessarily going to be a barrier to securing a payday loan when you need one.

When you apply for any short-term loan, including a payday loan, the lender will likely perform a soft check of your credit history. This will give the lender a basic overview of your current financial status but, unlike a hard search, will not directly impact your credit score. The lender will use this overview, along with information provided in your application (income, employment history, etc), to determine your eligibility for the short-term loan you have requested. This is an automated process and all carried out within a couple of minutes electronically.

If you are approved for the loan the lender will then perform a hard check on your credit file which will show in your history. This process helps to protect you from multiple hard hits to your credit file which, over time, can damage your rating.

How Affordable are Payday Loans?

Every loan costs additional money by way of interest and payday loans typically carry a larger APR % due to the short term nature of the loan. If you are accepted for a cash loan, you’ll be informed of the total amount repayable as part of the loan terms and at this point you will be able to choose whether or not to proceed with the loan application.

Before applying for, and accepting, a payday loan it is important to understand the total cost of the short term loan. Consider the following points of interest:

• Overall Cost to the Borrower – Lenders authorise payday loans according to the borrower’s eligibility, income, employment history and outstanding debt. Each of those factors plays a part in determining what the lender is willing to borrow you and over how long. As a borrower, you are agreeing to repay the original loan amount as well as all accruing interest. Before accepting any short-term payday loan consider your income stream and compare it with the total cost of your loan.
• Interest Rates – Interest rates on payday loans are set by at an APR (annual percentage rate). It is important that you understand how the interest on your loan will be calculated as it will directly impact the affordability of your loan. These rates tend to be typically higher with short term loans given they’re paid back in under a year. So be sure to review the total value figure.
• Repayment Terms – Payday loans, by their very nature, have brief repayment schedules. It is important to review the terms of your loan before accepting the offer. Remember, you will be repaying both the original sum as well as all interest. It is important that you fully understand the amount to be repaid as well as the time you will have to repay it.
• Late or Missed Payments – Late payments are to be avoided. However, if you’re having trouble paying back your loan on time you may ask for an extension. Understand, however, that lenders are in no way required to extend, or rollover, your loan. They do this at their own discretion.

However, if your lender does agree to extend or roll over your loan you should understand that it will greatly increase the total cost of your loan. You will be charged extra fees and interest over and above your original agreement.

How Do You Repay Your Payday Loan?

The most common method of repaying payday loans is via direct debit. This process allows the lender to withdraw scheduled payments from the borrower’s current account according to the terms of the loan agreement.

If at any time there are not enough funds available to cover your loan payments the lender may continue to submit withdrawal requests to cover your payments. This will may lead to increased fees issued by your bank or large, unauthorised overdraft penalties.

Why Use Pounds to Pocket

How to Apply for a Payday Loan

At Pounds to Pocket we make applying for a payday loan, even with bad credit quick and easy. All you need to do is fill in the online form stating the amount you are interested in borrowing and providing us with some basic financial information.

In order to be considered for a payday loan you should meet the following criteria:

• Applicants must be 18 years of age or older.
• Applicants must be valid residents of the United Kingdom.
• Applicants must receive an income from either employment or benefits.
• Applicants must have an active UK bank account.
• Applicants must provide valid contact information (e-mail, telephone, home address).

It is recommended that you gather together all of your personal information before making your application. Make sure all information is accurate and up to date. Any discrepancies may delay your application’s approval or result in your loan request be denied.

If you are approved for a payday loan through Pounds to Pocket, the money you requested will be deposited directly into your bank account. In most cases customers can access their cash on the same day the loan has been approved however if you apply for a cash loan on a weekend or public holiday, the loan funds may be sent the next day.