A simple web search into Payday Loans will bring about a slew of results, many of which are from proprietors of the service. This often leaves browsers with more questions than they began with after a short stint through the lists of sites that appeared in the results. The body of knowledge concerning this service, while big, is not well defined. What will follow is an attempt to provide a little more definition in order for a better grip to be possible.
The first thing to do is to set aside the notion that Payday loans are the same as cash advances. While they are related, they are more like cousins and less like sisters. Cash advances have various providers such as credit cards, personal accounts, and even employers. All of these have different rules pertaining to interest and repayment cycles. Payday loans may vary in interest charges but all of them have a repayment date that coincides with the borrower’s next paycheck.
The most important thing to remember about these loans is that the who is more important than the what. The who being how old the borrower is and the what being how much they want to borrow. UK Payday Loans are only available to persons 18 and older as this is a grown-up transaction. In order for the borrower to transact there must also be a receptacle such as a valid checking account.
The amount that Payday Loans can put out is the maximum equivalent of what the borrower can put it. This usually is the amount of their steady and verifiable income. This means that it should occur at predictable intervals and if the borrower claims they have the goods they must be able to prove it. So having a little extra something on the side that is not on the books will not meet the lenders requirements.