Do I need a credit check to get payday loans?

Payday loans are not nearly as bad as the media makes them seem. Keep in mind they are not a forever solution for any financial burden and can put you in debt but so long as you use them as intended and explained.

In this short payday loan informational piece you will have no problem getting out of the hole you find yourself in.

credit score

Do I need a credit check to get a payday loan?

Most payday loan providers do not require a credit check. To qualify, you’ll need a regular income (this can include benefits) and an active bank account. If a lender does conduct a credit check.

It means they will also add a note to your credit file to show that you have settled the debt on time (as long as you do). This can have a positive effect on your credit rating.

How much can I borrow?

This depends on your circumstances, but generally between $75 and $1,000. Payday loans are not the best option for exceeding the $1000 mark but it is still possible.

How much will a payday loan cost?

As a general rule, you will pay $25 for every $100 you borrow. So, if you borrowed $300, you’d need to repay $375.

This does vary between lenders and you will be given an exact total for the lenders before you complete the agreement.

What is a payday loan?

A payday loan offers a short-term borrowing facility, usually for no more than 30 days. They are merely designed to bridge the gap if you’re struggling to make ends meet before payday.

They are not intended for long term or regular borrowing needs. A payday loan will cripple you if you let it. Be sure to borrow smart. your credit score should still have some infuence on if you should even take the payday loan without checking your credit.

When is a payday loan suitable?

A payday loan should not be treated as everyday borrowing, but as emergency funds. Don’t use one to pay for anything unnecessary, like extravagant treats, holidays or shopping sprees, but it is worth considering if a hefty and unexpected bill risks you into an unauthorized overdraft or if you have a home or family emergency you can’t afford, like a broken boiler or medical bills

Why is the APR so high?

Media make a lot of noise and hype about payday lenders charging annual percentage rates of than 1900% – pretty steep compared to best buy personal loan rates which are below 10%.

However, it’s important to remember that ‘APR’ refers to the cost over a full year. Payday loans are pricey, but they are only intended to be used for around 30 days at the most.

You should NEVER have one for a year, therefore the actually charge you repay is around 25%.

How do I repay the loan?

Our providers arrange to withdraw the money straight from your current account once your payday arrives, while others require you to repay the money by debit card or cheque.

Each lender will advise of their terms when offering the loan.

What if I am paid weekly?

Most of our lenders will agree to be repaid after your fourth payday. that is another reason why you need 

Will the lender contact my employer?

No, don’t worry, your application will be completely confidential and the lender is not allowed to pass on any information without your agreement.

How soon can I get the money?

This depends on the payday loan lender but many will aim to have the money in your account within 15/20 minutes from approval.

Can I roll the debt over to the following payday?

You can, although this wouldn’t be advisable as these short-term loans become extremely expensive if you use them for longer than 30 days. Most of our lenders will require that you repay the interest at least, while others will charge an additional fee for delaying repayment. You will then also pay an additional months worth of interest. For this reason, you are strongly recommended not to roll the debt over.

What information will the lender need?

You will need your bank account details, plus information on how long you have been with your employer, or on benefits, and when your next payday is due. They may also ask for your National Insurance number, so have all this information ready before you make an application.

Payday loans are not nearly as bad as the media makes them seem. Keep in mind they are not a forever solution for any financial burden and can put you in debt but so long as you use them as intended and explained in this short payday loan informational piece you will have no problem getting out of the hole you find yourself in