Much has been said about the disadvantages of payday loans and how they take advantage but to people who are in desperate need for a little cash immediately, payday loans really seem to be the only and best option they can have. Credit cards may require a couple of days to be released and bank loans and other types of loans may take several weeks or even months to be released plus the fact that they require lots of important documents.
Many people who are in desperate need to obtain immediate cash have little to no chance of acquiring cash advances from traditional loan sources. When they apply for credit cards, rejection is most likely to happen.
An overdraft maybe out of the equation when the basic account only allows withdrawals, deposits and direct debits. Other borrower may be stretched their overdraft to its limit and may have been left short of cash due to unauthorised overdraft fees.
Payday loans are popular to people who cannot apply for a credit card, secure a bank loan or extend an overdraft due to undesirable credit rating.
Take this case. A person borrows 200 at KwickCash.co.uk, with a promise of returning a total of 250 within a month. Whether the borrower returns the money in 1 or 28 days, he will have to pay 250 as agreed. This gives a total variable APR of 1737%.
They brag that their “acceptance rate is second to none” and are the largest payday loan providers in the United Kingdom. But they can charge their borrowers with a total of 4,214% APR which simply means that borrowing 200 will earn you a total payment amount of 266.31 by the end of a month-period.
Many people in Europe know that payday loans can be accessed by people who have poor and unsatisfactory credit rating. You are at the disadvantage if you opt to borrow from companies that do not conduct credit rating check prior to the release of loan. Nocreditcheckloans.co.uk grants a total loan of 200 on a promise to return 258 within a month. This gives a total variable APR of 2120%.
Deferred deposit loans are often referred to as payday loans but for many companies, this is not true. Many companies and lenders are willing to release loans for people who receive state benefits and those who cannot present their proof of income. But of course, you should know that these providers are the ones who are taking advantage of the poorest in the society by charging very high and unreasonable interest rates.
If you really do need a payday loan in England, why don’t you consider using Cash Choice? They appear to have a decent reputation. Read more truly unbiased information about payday loan at Revenue Connections.