‘Instant decisions on payday loans' is a phrase you've probably heard around quite a bit recently, but unless you've really looked into it you might not be aware of what it means or how it can help you.
A payday loan models itself on the cash advances that employers used to offer. If an employee had a problem, like a punctured tyre or broken central heating, then the company would provide a cash loan on the understanding that it was repaid on the next payday, straight from the workers pay packet.
Loan businesses have now taken over the role that companies used to have in providing the money, but the main principles are still there. You will only be allowed to have one loan out at a time, and you are expected to repay the loan in full as soon as possible, perhaps by your next payday but almost certainly within a month. Some lenders enforce this by requiring you to send them a post dated cheque which they will bank on the due date.
Most applications now are carried out online, and the quick response explains the rest of the ‘instant decisions on payday loans' description. It is made possible by keeping the eligibility requirements to a minimum – you usually only need to be employed and have a bank account to qualify – and keeping the process as simple as it can be.
Providing instant decisions on payday loans helps both you and the lender. You get the money sooner, often the same day, and they get to turn the money round faster instead of waiting for application forms to be returned and assessed.
Applicants don't have to disclose the purpose of the loan, so there are no restrictions on what is used for. The lender isn't really interested, as long as you agree to repay it at the right time. |
