Payday Loans - Easy and quick approval for credit
By Michael Strauss
Cash advances, or payday loans as they're often called, are a form of short term finance used to bridge the gap between running out of money towards the end of a month, and the arrival of the next pay packet or salary.
They are often criticised for being expensive, with seemingly outrageous APRs of 1000% or above quoted, but while no one can argue that wage advances are one of the most costly forms of finance, the short term nature of the borrowing means that APR is not really an appropriate measure to use, representing as it does the cost of borrowing over a full year rather than the days or weeks a typical payday loan will be taken out for.
Credit Is Scarce
In these difficult economic times. more and more people are finding that their finances are stretched and are looking for some form of credit to see them through, yet lending by high street banks and many other institutions has become much more difficult to arrange. The good news is that the payday loan industry has yet to show any signs of being hit by the credit crunch, and approval ratings for these loans remains extremely high.
So just who can apply with a good expectation of being approved?
Is Credit Rating An Issue?
Almost all forms of finance rely on a system of credit scoring to decide whether or not a credit application will be approved. Payday loans are something of an exception to this rule. So long as the applicant isn't banktupt or has an IVA, where the taking on of further credit is legally barred, almost all applicants will be approved providing the following criteria are met:
Employment
The applicant must be in regular full time employment, with a wage or salary large enough to cover the amount borrowed. The payday lender may require proof of employment, although this isn't normally the case.
Bank Account
The applicant must also have a bank account with a debit card facility, as the loan will be repaid automatically via the card when your next wage or salary is credited to your account. In times past, all payday loans relied on post-dated checks, and while this system can still be found in high street lenders, debit cards and automatic repayment are now the established way of clearing the debt.
Age
All payday borrowers will have to be at least 18 years of age.
As we can see, the terms of qualification for a payday loan are generous and so this form of finance is available to almost all who require it, although it shouldn't be taken lightly given the rather high costs and dangers of debt involved.
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