This week has seen payday loans come under criticism from debt advice groups who claim that some companies are charging excessively high interest rates on this type of loan. The debt advice groups are calling for a cap on interest rates for payday loans however, the Office of Fair Trading (OFT) responded to this by stating that payday loans would be covered by investigations of the issue of responsible lending and that although the loans, often used by people to tide themselves over until they get their wages, generally attract high rates of interest, the businesses offering them are properly licensed, professional and responsible.

UK payday loan providers also responded to the criticism by explaining that higher interest rates are levied on payday loans to reflect the level of risk being taken by the lending companies.

As one would expect, the payday loan companies claim they are providing a valuable service to customers who may be unable to get credit elsewhere. However, this claim is supported by the rapid rise in popularity of the products offered by the payday loan companies as they provide a real alternative to unauthorised overdraft charges, pawnbrokers and loans from friends or family.

Payday loans do not involve a credit check and for this reason they are sometimes referred to as bad credit loans. No credit check means that these cash advance type loans are therefore available to those who are unable to get other forms of credit such as credit cards, traditional long-term loans or overdraft facilities. The loan companies do however require proof that the applicant is currently employed and that their next pay cheque will be more than sufficient to repay the loan in full.

Many payday loan customers report that by getting a payday loan they are able to resolve their immediate cash-flow crisis and buy themselves a little bit of breathing space in which to assess their finances and to get advice on how to manage their money better.

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It can be almost impossible for those with a bad credit history to get loans or credit cards. Frustratingly this can be as also true for those who have actually cleared that debts as for those who still owe money. This is because credit card companies and loan providers carry out credit checks each time someone applies for credit. The purpose of these checks is to examine our credit history which details any credit we have ever had from credit cards, loans to mortgages. Not only can companies find out exactly how much debt we currently have, they can also determine whether we have ever defaulted on our loan, credit card or mortgage repayments. Thus, even when someone has cleared their debts, they may still have a poor credit rating if they have previously defaulted on their repayments.

When it comes to applying for a payday loan, a bad credit history will not be a barrier to approval. This is because payday loan companies do not carry out credit checks on those applying for a cash advance on their salary. Payday loans are extremely short-term loans and the loan companies will demand repayment of the total loan amount on the very same day as the borrower next gets paid. The brevity of the loan term together with the fact that it is simply an advance on the borrower’s salary makes a person’s credit history irrelevant. The primary qualifying factor is the value of the applicant’s pay cheque and the date on which it will be paid.

Provided that an individual can submit of proof of their id and address together with copies of their most recent payslips and bank account details, they are eligible to apply for a payday loan, irrespective of their credit history.

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UK Payday Loans have taken a look at car finance to explore the concept of borrowing money to get finances for the all important motor viechle. If you have had a question lately about car finance you are not alone online. Take a quick look at this topic and learn some easy steps to getting the money or funds you need to have that car you want and find the answer your question; ” How can I get a car finance loan ? “.

First of all you want to decide if you need a car finance or simply a lease. Do you want to be responsible for higher payments if you can not make a large down payment ? If not the choice of leasing may be more attractive to you. You will still need some money for a deposit with a lease but your term will expire at a set time. You are allowed to relinquish the car or purchase it at a discount.

Getting your dream car finance on the car you want will involve how much you can afford per month coupled with your assets. If you own a house or a boat you may be able to use them to help back up your loan. A credit union or an online lender is going to give you better interest rate than the dealer themselves. You will pay more for the convenience to pay at the place where you buy. Make sure to check the fine print. Will you get a penalty for paying off the car early ? Check on the type of auto insurance you will need. If the deductible is different than what you expect you may not prepared for the unwelcome surprise if you are involved in an accident with your new car.

One thing you may not have known about a car finance is that the dealer can take a ” few pounds off the top ” while he is signing you up for the loan. They can and of course do make up the interest rates to get a higher commission on their sales. For this reason request to see the approval letter from the lending institution before you sign anything. It always pays to read the fine print, especially on something as important as your car. And if you have adverse credit consider a no credit check loan application to get access to the funds.

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