More people than ever are finding it hard to secure a loan of any description be it a credit card, personal loan or payday loan. This is because the double dip recession has forced many families to breaking point as the impact of redundancies, pay freezes and hiked prices takes its toll on family budgets, effectively forcing them into the red. Families are simply finding it harder and harder to survive which is pushing their credit limits to the max and their overdrafts to the brink. Cash till payday loans have been introduced in retaliation to the demand for more short term loans to assist families with making their salaries last each month.
There are now thousands of cash till payday loan products on the market. The generic business model for this product is that it is a short term loan for a period of time between 15 and 31 days. The amount that can be borrowed is usually £50 to £1000 and the average rate of APR (interest) is 1737% which is equal to £25 for every £100 borrowed for a month. The loan can be ‘rolled over,’ which means that if a customer is unable to repay the loan by the agreed date, they can postpone the date by a month, however this will incur another months interest therefore making it more expensive.
The typical qualifying criteria for a cash till payday loan is the following:
- The consumer must be 18 years old or over
- The user must have a UK bank account (and debit card)
- The user must be in either part time or full time employment
- The user must earn a minimum of £750 per year
Therefore the general rule of thumb is that you must have a UK bank account AND a debit card in order to qualify for a payday loan. This is mainly for practical reasons as the payday loan company will need a UK bank account to make the cash deposit, otherwise how will you obtain the cash? Be very wary if anyone advertises services to the contrary as receiving a cash deposit over ‘the shop counter’ is a very unprofessional way to do business.
Payday loans usually require a UK bank account as well as a debit card as a minimum requirement for obtaining a loan. This is because having a UK bank account facilitates the process of the cash deposit into the applicants account. Therefore try and obtain one before applying for a loan to give you the best possible chance of being accepted for the loan.