Instant cash payday loans are all over the news lately. In America, many states are looking to ban payday loan lenders altogether or at least cap the APR that they charge. In the UK, instant cash payday loans are in the news and certainly causing a stir, but not yet to the degree as in America.

Here’s one article from Mirror.co.uk investigative reporters Penman & Sommerlad about payday loan companies that are based in the UK. Yikes!

Instant cash payday loans have high annual percentage rates, but it cannot be said enough that APR’s are an annual rate and cannot accurately be applied to short, 30 day loans. Also, any responsible lender will clearly state on their website that instant cash payday loans are for cash emergencies and are not meant for regular use or a supplement to your income.

With all the bad press that payday loans are getting, many new companies are boxing clever and sticking a new name on an old product. Don’t be fooled by the “microloans” and “microcredit” tags and always read the fine print.

Everyone can rest assured that with all the changes in the market, SameDayCash will continue to work with reputable lenders when connecting UK consumers to short term loans for cash emergencies. We may call short term loans by multiple other names, but we’ll continue to stress that these loans are for cash emergencies and they need to be repaid within a month. A borrower should always think about the affordability of a loan before they borrow any money.

Fifteen years ago you probably never imagined that fax machines would one day be relegated to the dusty back corners of busy offices, yet the time has come. Today, fax machines are now a piece of electronic history along with floppy discs, pagers and VCRs.

If you’re still using a payday loan company that requires you to fax documents, then you are living in the dark ages. In this day of modern conveniences and instant gratification, same day loans with no faxing shouldn’t be something to brag about, but rather an industry standard.

SameDayCash offers you the convenience of applying for same day loans with no faxing. We also work directly with numerous UK payday loan lenders who feel the same way about same day loans no faxing. The information requested from many of our lenders is enough to decide if we can offer you a same day loan with instant approval.

Simply apply with SameDayCash and we’ll do the busy work of matching you with a UK lender.

If you’re looking for a same day loan with no faxing, then browse through our Payday Loans Directory to find which UK payday loan lenders can offer you an application for a same day loan with no faxing required.

Get with the times and use SameDayCash to apply for same day loans with no faxing.

Were you turned down for a payday loan?

Most of us have applied for a credit card, loan and even payday loan at some point in our lives, however sometimes the application goes through and other times it doesn’t, even though your circumstances haven’t changed, sounds familiar?

Ever wondered why your payday loan application was turned down? Below you’ll find the common reasons as to why someone will be turned down for credit, it’s not some sort of magic algorithm but a credit score calculated using your application details and your credit report. This will then calculate a score that varies from lender to lender, and the score will determine whether you get your payday loan or not.

Check your credit file

The first step to finding out why you’ve been refused a payday loan would be the check your credit history. Your credit history will detail your debt.

You have no borrowing history

Payday loan lenders, credit card companies and other credit providers will prefer a borrower who has got history of paying debts diligently. Without a borrowing history, a payday loan lender will not be able to tell whether you are someone who repays on time and manages your credit effectively.

You are not on the electoral roll

This is a very common reason as to why people are refused credit. The electoral register is a tool mostly used by payday loan lenders to verify your identity and that you live where you say you live.

Too many searches on your credit report

Whenever you apply for a payday loan, the lender will do a search on your credit report; this means there will be a track record for every time you apply for credit. Usually this doesn’t really affect the likelihood of getting a payday loan accepted, however if you apply for a payday loan from several lenders in a very short space of time they might think you’re in too much debt (unlikely to make repayments), desperate for cash, you’re a fraudster, etc.

Lender requirements vary

Some payday loan lenders prefer younger audiences, others prefer people who fit within a specific socio-economic group, you’ve done nothing wrong, it might just be you do not fit their profile.

You have been in debt in the past

Missed credit repayments stay on your record for three years, so while you may be financially fit today, lenders may take a dim view of your past. Bankrupcy can remain on your file for up to 15 yeards and CCJs will be held on file for six years.

UK consumers who find themselves in a financial pinch are applying for quick cash loans to ease the pressure until payday.

Estimates show that quick cash loans have more than doubled since the beginning of the credit crunch in August 2007.  Payday cash loans have skyrocketed some 130 per cent in 10 months, according to Moneymarket.com and quick cash lenders are springing up online in droves.

Unforeseeable expenses force people to take out quick cash loans in the UK

Quick cash loans are on the rise as more people find themselves facing unforeseen financial problems unlike never before. Cash loans of this type are commonly repaid within a few week, they provide borrowers just enough breathing room until payday and are generally a convenient source of immediate cash. Most UK consumers that borrow from quick cash loan agents use the money to settle last minute debts or to help them through a sudden financial emergency.

The majority of borrows take out quick cash loans to pay for utilities or last minute home repairs. “Quick cash loans have always helped me more than hurt.” Says David Scott of Manchester, a frequent customer of a popular online cash loan service. “I use the cash for emergencies mostly, although it seems I have an emergency every other week.”

APR and quick cash loans

The typical APR (annual percentage rate) charged by the average UK quick cash lender is 1,355 per cent – however, APR rates are not necessarily relevant to short term cash loans since they are commonly paid within 30 days or less. Although quick cash lenders concede that their services are certainly not the cheapest loans, they are the least invasive, most convenient and the fastest solution to an unexpected financial crisis. UK Payday loans, as with U.S. payday loans, are intended to help people who are struggling to make ends meet. Whether one has bad credit, no credit or simply has no other solution, a quick cash, short term loan is often the only option and the APR is truly irrelevant.

Quick cash loans and additional finance charges

Generally, the interest rate of quick cash loans will be clarified and agreed upon by both the lender and the borrower well in advance. However, many UK consumers have reported extending a quick cash, short term loan or taking out a second cash loan from yet another payday lender to pay back the first, and so on.  This leads to additional finance charges and debts can snowball out of control if the loan isn’t repaid on time.  “We always encourage our customers to settle their quick cash loans promptly.” says one leading UK cash loan agent. “It’s always best for both the consumer and for the UK lender if the money is repaid, in full and on time. When taking out quick cash loans, it is vital for consumers to view it as a last resort solution, rather than an ongoing habitual practice.”

There is no denying that if a person cannot payback a small cash loan on time, it will end up exacerbating ones financial problems and thus lead to more debt. Cases such as these are rare and uncommon since most small cash borrowers are responsible, hard working UK citizens, eager to overcome a financial crunch and capable of settling their small debts without problems.

This provocactive piece doesn’t trash payday lending but explains how payday lenders understand the risks of making loans better than many of the mortgage lenders.

Filed: Recommended reading on the payday loan industry.

2008-10-06 13:41:28

Read the original post: What payday lenders can tell you about the current crisis

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