Payday Loans compared...

Sometimes, going onto payday loan websites will bring you more questions than answers. Getting the facts regarding the ins and outs of this form of short-term credit will give you some certainty as you prepare to make an application, and research will also allow you to get the best deal.

Q: How much can I receive from payday loans?

The amount of money that you’ll be able to receive from a payday loan provider in the form of payday loans with bad credit is subjective, and depends on your credit report and the experiences that the lender has had with you before. Some companies work on a loyalty scheme where they will be prepared to lend progressively more money over time; gaining a good reputation as a borrower with the account you have.

Q: How fast does the money hit my bank account?

The money that you will be offered will hit your account on the same working day if you make an application by the early afternoon. Some lenders promise applications to be reviewed and money to be repaid in as little as 15 minutes, but this is entirely subjective to the provider you choose.

Q: Can I repay early?

There is nothing to stop you from repaying your payday loan early, although it is unlikely that you will pay less interest as a result. With many loans, early redemption fees can be a common thing that loan providers will levy onto consumers who wish to settle their loan earlier than planned. The main reason for this is because of how many loan providers accept your application on the basis that they will receive a substantial amount of interest over the term of the agreement, and settling early reduces the profit they receive!

Q: What can I do to contact payday loan providers directly?

With many lenders being based online, ‘live chat’ functions are some of the most common ways to get in touch with the services you are using. This said, larger companies will offer call centres and email facilities so your query can be answered relatively quickly.

Q: How much flexibility do I have over when the payday is?

Some websites provide you with a slider that enables you determine how much money you want, and how long the period you want to borrow is. In some cases, you will also be able to spread out the payments over two or more paydays. A good example of such a lending model is businesses that offer payday loans over a three-month period. Of course, the longer that you have an agreement for, the more interest you will pay for the privilege.

Q: What are the alternatives?

With bank overdrafts being extortionately expensive and logbook loans requiring the security of your car, payday loans are the quick and easy way to get the short-term credit you need. Assuming you borrow and pay back the money on time, emergency payments that you need to make will be achieved easily, and this is a real reassurance if you want to live within your means.