Payday loans UK are offered for short periods and should normally be paid back at the next date the applicant is paid. The duration is typically one month, or, at the most two months. They are often provided to applicants with a bad credit history.

It may be useful to have a loan for a short period when an unexpected expense occurs. When a car breaks down, or there is a dental emergency, there are not always funds available. These are times when a short term advance may be required.

These loans are normally repaid when the applicant will next be paid. The amount advanced ranges between approximately a maximum of fifteen hundred pounds and fifty pounds. On-line applications are normally made but telephone applications are also accepted. This type of loan is also referred to as payday or cash advances.

A bank account with a debit card is required to apply for these advances. The person applying for the loan is required to be at least eighteen years of age. He or she must also be in employment before an advance will be considered.

Credit reference agencies are used when this type of loan is taken out. If the loan is repaid fully and on time, this is reported to the credit reference agencies and may help to rebuild a bad credit rating. Equally if the loan is not repaid this will also be reported to the agencies making a bad credit history even worse.

To apply for this type of advance is very easy and straight forward. The advance can be made available in the applicant’s bank account within a day, and sometimes, within an hour of approval. No security is needed for these types of loans.

Short term advances are expensive and are shown to charge approximately twenty five pounds for each one hundred pounds borrowed. This works out to be a representative annual percentage rate, or APR, of more than one thousand seven hundred percent. Differing rates and charges are offered by companies and therefore comparisons should be made before applying for an advance.

When a cheque is presented to the bank where there are not sufficient funds to cover it the cheque may be bounced. In this case, the owner of the bank account may be charged a fee by the company who presented the cheque, in addition to charges from their own bank. If a direct debit causes the balance of a bank account to become greater than an agreed overdraft there may also be bank charges and fees for late payment. A short term loan could be less expensive than the total of the charges and fees.

Payday loans UK would be a safer and more secure option than lending from a loan shark. Loan sharks are not licensed, and there is no legal agreement in place, and normally no paperwork is provided. This means that the loan shark could vary the terms after the verbal agreement has been made putting the borrower at risk of even higher repayments.

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