Frequently Asked Questions

What is a Payday Loan?

A payday loan is a small loan designed to assist in times of short term financial difficulty. Payday Loans can be useful if you need to borrow a relatively small amount of money until your next pay day. The money can be used to pay unexpected bills and can be cheaper than having an unauthorised overdraft with your bank.

Is a Payday Loan right for me?

Payday loans may be right for you if you are CERTAIN you can repay the loan on your next payday without causing you financial distress and help in credit card funding. If you need a loan for a longer period then you should look at cheaper alternatives products. As if you fail to repay the borrowed amount together with any interest and charges on your next Payday, then the outstanding amount may attract monthly interest charges. If you are suffering from long term financial problems an advance loan payday loan simply is not the right financial product for you. Please do not apply.

If you feel that you cannot resolve your chequebook loans and other financial problems then we strongly recommend that you contact the consumer credit counselling service, they are a not for profit organisation that specialise in providing free confidential counselling for financially distressed families. Or visit their website by using this link www.cccs.co.uk

You may still be eligible for a Payday Loan if:

  1. You have CCJ's
  2. You're a tenant
  3. You've been refused credit elsewhere

Will I be able to roll over the debt to my next pay date?

In most cases the lenders we deal with may allow to rollover your loan to your next pay date, typically you must inform them 3 working days before the loan is to be collected from you bank account. Further information may be obtained from your lender.

Please note rollovers are good for payday loan companies as they reduce the costs associated in attracting your business. However it can make the payday loan expensive for you as the customer, as it increases the period and financial charge you will have to repay. Therefore please consider this carefully before you rollover your payday loan. If you know you need a loan for longer than 31 days please seek out other more suitable financial products such as chequebook loans.

Can I have more than one pay day loan outstanding at any one time?

No, lenders will only let you have one advance loan payday loan at a time.

How much can I borrow?

The lenders we deal with typically have borrowing limits of between £80 and £1000, the amount they loan is dependant upon your individual circumstance. Most lenders restrict first time borrowers to up to a maximum of £300.

How do I repay the loan?

Lenders collect the money directly from your bank account (where your salary is paid into) on your next pay date. They do this by using the debit card details you registered with them.

Will you contact my employer?

Some lenders may, contact your employer, to confirm the details you provided are correct. They will usually contact you via the work number you provide.

Will you check my details with a Credit Reference and Anti Fraud Agencies?

Some lenders may check your identity with these agencies, to assist them in their underwriting decisions. Having bad credit will not necessarily prevent you from obtaining an advance loan payday loan. Lenders tend to look at your recent financial performance and your ability to repay the loan on your next pay day.

You must read the terms and conditions so that you understand the arrangement you are entering into.

Please read all the documents before you electronically sign the Loan Agreement.

What do I need to qualify?

Why is the APR high?

The APR is a calculation that lenders are required to provide you with is based on the cost for credit if you are repaying the debt over a year, with the debt reducing when repaid by instalments. Payday Loan is usually repaid within 31 days, in one single payment. Therefore the APR is high but you are actually paying £25 per £100 borrowed. Banks fees per item for unauthorised overdrafts can be considerable higher.

The APR rate applicable to your individual loan will be shown on the agreement they send to you and will vary dependant upon the length of time the loan is outstanding please see the illustration below for further information.

Illustration

If you borrow £200 over a 30 day period.
Total amount repayable £250.
APR 1355%.

If you borrow £200 over a 15 day period.
Total amount repayable £250.
APR 22694%

However as you can see the actual amount charged £25 per £100 borrowed does not change just the APR varies.