Over the last couple of years there are two types of loan that have specifically caught the attention of UK borrowers; both these loans have been ideas imported from the USA and have proved exceptionally popular during the recession. While no loan should be taken without first carefully considering the terms and conditions if you are looking for a no credit check UK loan you may want to consider one of the following.

Payday Loans

Payday loan lending has increased over 241% over the last 4 years in the UK, from £1.6 million in 2006 to £4.1 million in 2010. These loans although originally devised for the US market have caught on very fast and it looks like the trend is destined to continue.

Payday loans are popular for a number of reasons but primarily for their ease of use. Most Payday Lenders carry out no credit checks, do not require their borrowers to fax any details and can provide the loan within 24 hours. Also, the application can be fully completed online without ever having the need to meet someone in person or discuss the loan over the telephone.

Payday loans no credit check charge £25 per £100 borrowed, and many allow you to roll over this amount to the following month with only a payment of interest.

Logbook Loans

These loans are a very different beast to Payday Loans and offer lending on very different terms. As with payday loans they run no credit checks and will provide their services to even those with a very poor credit history. Logbook loans offer lending over a much longer period of time, but insist that they receive a vehicle as collateral. The lenders state that they will lend up to £50,000 but in truth any loan offered will be approximately 50% of your vehicles value.

Remember that no credit check loans will provide loans quicker, but these will usually (in almost all cases) have a much higher APR rate than you would normally expect from the far more conventional bank loan, or conventional secured loan. When taking one of these loans be sure you can afford the repayments and ensure that you are willing to pay this inflated interest. If you are already struggling.

Comparison sites have a nice advantage that lender sites do not and that is that they allow you to surf through the different lenders with ease to help you make an informed decision. Not only do they let you look at all the different lenders all at once but they can also provide you with the different rates and fee information you need so you can see which one is best for you.

There are a few ways to compare these companies and make the best payday loan decision. Here are some things to consider when comparing payday loan companies, but first you need to:

Decide Whether You Will Be Borrowing From a Physical Location or Online

In order to compare your options in the quickest manner, you first must determine whether you will be obtaining your payday loan through a cash advance company in your area or whether you will be going through an online company to get your money. This will help to narrow down the options and aid you in choosing the best company.

Determine the Amount Needed

Next, figure out how much you want to borrow on the payday loan. As payday loan companies have caps on how much they will lend out to an individual, you want to choose a company which will meet your funding needs adequately. By knowing how much money you have to borrow, this will also help by making it less likely for you to over borrow.

Once you have decided whether you are borrowing from a physical location, or online, and decided on the amount you require you are ready to look at the terms offered by the various lenders. Look for information related to the points discussed below:

Compare Loans to Obtain the Most Favorable Interest Rates

When you compare payday loans, chances are that you will find the most favorable fees along the way. Should you simply pick a payday loan lender from amongst the bunch, you probably will pay more in fees than if you shopped around briefly for the best payday lender out there. Fees can be pretty high, especially if you don’t look around prior to settling on a payday loan. Since this will boost the repayment price up quite a bit, you want to be sure that the fees are as low as possible. The interest rate will often be the determining factor when there is a tie between two different payday loan companies and you are unsure as to which company you should go with.

Get the Amount You Need

Another reason to compare payday loans is that you will get the amount that you need. As payday loan companies have caps on how much they will lend out to an individual, you want to choose a company which will meet your funding needs adequately. By knowing how much money you have to borrow, this will also help by making it less likely for you to over borrow.

Obtain the Best Repayment Terms

An additional factor to consider in order to help you decide on a payday loan company relates to repayment terms. You want to have enough time to repay the cash advance yet not have it be too late due to the potential fees attached to longer repayment terms. Most payday loan companies will have a form to review which tells you everything you need to know about the payday loan, including the repayment terms. Read the entire document carefully and be sure to specifically review the repayment terms to ensure that you can pay back the loan without too much added expense.

Consider Reputation of the Payday Loan Lender

When you are in the midst of comparing payday loans, make sure that you don’t neglect to review the reputation of the payday loan lender. A payday loan lender which has been around for awhile, has a good client base and is fair in their business dealings is usually the best one to go with. Take this knowledge and compare it with the other aspects they offer to their borrowers. If your lender has a good reputation and offers low fees on the payday loan with favorable terms, they are probably the best one to go with.

When you compare payday loans, you will get a true idea as to which loan will suit you best and get you the money that you need quickly. Comparing payday loans does not take a long time and it is best to be armed with as much knowledge as possible when obtaining a quick money loan.

When people first start looking for a no credit check loan online they might get feel bombarded by a huge number of websites, lenders and brokers.  Not to mention a large amount of websites that simply look like scams or have a dodgy feel about them.  One of the more specific decisions to be made is to decide between payday loans or a logbook loans.  They appear similar on the surface but there are several crucial differences between the two forms of no credit check loan.

*Use our quick comparison below or visit our home page for full comparison!

	Lender	Debit Card	Loan Amount	Interest	Documents	Apply
3.	Payday UK	Not Required	£80 - £750	£25 per £100	Not Required	PROCEED
2.	Quick Quid	Not Required	£100 - £150	£14.75 per £50	Not Required	PROCEED
4.	Payday Express	Required	£80 - £800	£25 per £100	Not Required	PROCEED
1.	Payday Bank	Not Required	£80 - £750	£25 per £100	Not Required	PROCEED
5.	Purple Payday	Not Required	£100 - £750	£25 per £100	Not Required	PROCEED

This article will first look at the similarities between the two most popular forms of bad credit loans and then go on to list the differences.  Some of these may be obvious to readers who have done some research online, but some things are more subtle and may effect the decision made by the potential borrower.

Similarities between log book loans and payday loans

1. Both types of loan are no credit check loans.
2. Lenders of both types of loan will lend money to borrowers with very bad credit or who have been refused by other lenders in the past
3. Borrowers can make the initial application online for both logbook loans and payday loans.
4. Both have higher APR rates than mainstream lenders which reflects the fact that they lend to lenders with very bad credit who are seen as a bigger risk.
5. Log book loans and payday loans are both often seen as fringe financial products and not part of the mainstream lending industry.  This also includes some people having a bad opinion of the industry as a whole.
6. You need to be aUKcitizen over 18 years old to borrow money.

Differences between logbook loans and payday loans

1. With a logbook loan your loan is secured on your vehicle.  This means that you may lose your car if you fail to repay the loan.  However the borrower keeps full use of the car during the loan period.  With payday loans the lender makes sure that the borrower can repay the loan i.e. has an income and then issues unsecured loans rather than secured loans like logbook lenders.
2. You can borrow larger amounts of money with logbook loans than payday loans.  This is because they are car secured loan, meaning that a borrower can take as much money as he or she wants as long as the value of their vehicle covers the loan amount.  Lenders often lend half the market of value of the vehicle.  Payday loans tend to be loans of less than a £1,000, whereas logbook loans may go as high as £50,000 if an expensive vehicle is used as collateral.
3. Logbook loans have a lower APR than payday loans.  This is because they are car secured loans, but also because the loan period is usually much longer.  Whereas a payday loan is taken out for a month at a time – until payday – a logbook loan might have an 18 month repayment period.
4. There are far more payday loans lenders available to choose from than logbook loans lenders in the UK at this time.

The leading payday loans lender ‘Instant Loans Direct’ have said that following a review of over, 75,000 of their customers around 57% of their customers earn between £25,000 and £50,000 per year with 75% of all customers being between the ages of 25 and 45.

These statistics are sure to strike a cord with consumer action groups who have been calling for the banning of such lending practices, but in a time when banks are not lending it appears that bad credit borrowing is the only option for many.

Giles Coutts of Instant Loans Direct says: ‘Many assume it’s only those on low incomes struggling to get cash from their bank and who resort to payday loans.

‘But it’s actually the middle-earners whose budgets are being bust and who need the cash most desperately to cover them, usually for ten days until payday.’

James Falla, personal debt consultant at beatmydebt.com was fast to warn those struggling with their debt not to be tempted by payday loan companies, but instead seek advice on dealing with their debt.

“More and more we are seeing people who are already with significant personal debts turning to payday and doorstep loans to make ends meet. But borrowing more in these circumstances is simply not the answer and will make things worse” he said.

“It is far better to consider a sensible debt management solution such as a debt management plan or individual voluntary arrnagement which does not involve borrowing more” Falla advised.

Despite these shocking statistics it appears that the Payday Loan companies themselves are applying their own brakes to their lending policies – perhaps knowing that an even bigger recession is not a complete impossibility. These companies now appear to decline over 90% of their applications, so it appears at least for the time being that many have nowhere to turn for cash to get them to their next payday at all.

The industry has been in the news a lot recently as some members of parliament, as well as some pressure groups, have been campaigning for greater regulation in the industry to curb things like excessive APR interest rates and repayment amounts. These groups feel that payday loans lenders take advantage of people in need of cash loans and charge them exorbitant APR interest rates because they know that they have no other options for borrowing fast money. There are not many loans for people with bad credit available in the UK so these companies are accused of using this to their advantage and charging ridiculous fees because they know they can get away with it.

However, a lot of the complaints are based on a misperception of the APR interest rate that these payday loans companies charge. APR is calculated over a year’s payment period (by definition: A = annual) But the main point about payday loans is that they are to be paid back after ONE month I.e. at the borrower’s next payday. When the APR is calculated it skews the number and makes it appear far, far higher than it really is if you were to pay back the loan after one month. This is of course a problem with statistics in general and not just this industry but by law they need to advertise their financial products with APR fully shown and explained to customers prior to purchase.

In the UK there are various lenders providing payday loans for people with bad credit, and they are becoming more popular every day. Most of these lenders will have no credit check done on the borrower as part of the application procedure. The reason for this is probably due to the fact that the loans are for small amounts at a time and they qualify borrowers first by making them prove that they have a regular income and can therefore make the repayments. They are also unsecured loans so people do not have to risk losing an asset if they cannot repay the money for whatever reason.

What people need is very bad credit loans which are a type of loan available from various logbook loans companies throughout the UK. If someone with very bad credit applies to one of these companies then they can be given an instant decision as to whether they qualify and they don’t even have to go through a credit check. No credit check loans are unusual but available across the UK in the form of logbook loans where a borrower will put the car against the loan as security so the borrower has less of a risk when lending to them. The basic issue at stake is the likelihood that they will pay back the loan installments or whether they will default on the loan, because for obvious reasons a lender wants to get the principle back plus interest. The function of a loans company is to lend money to people and make a profit through the interest payments – they take a risk up front by giving someone else their own money and trusting them to give it back plus APR interest. Individuals with a very bad credit history have shown in the past that they cannot be trusted to repay loans – this is the meaning of a credit record, and this is what the checks are done on in order to ascertain the trustworthiness of the person.

Some people with very bad credit are in this position due to mistakes made many years ago, or even through no fault of their own, for example the behavior of a spouse with a joint account. The problem with a very bad credit record is that it doesn’t just go away when your circumstances change, like getting a highly paid new job. So someone could potentially be in the position of being in a fairly well paid job but need extra money and cannot get a loan from traditional lenders in the UK, while someone else on a very low paid job but with a clean credit record can get money very easily. Unfortunately there is not a lot these folks can do about it at present other than find a finance company that will agree to lend to people with very bad credit. The flip side of this is that the APR interest rate will likely be a fair bit higher than the APR at your local bank. It needs to be taken into account that the fact that APR is worked out over a year’s repayment time and often logbook loans repayment periods are much shorter than this, for example even as low as a single month. When the monthly figures are put in other terms then the repayments can seem much more reasonable.

It can prove very embarrassing to be constantly asking people you know and care about for small loans just to ensure you can afford your bus fares or a night out which is why payday loans are now offering their services.

Payday Loans are originally an American concept that proved so popular UK companies soon followed suit. In 2009 £1.2 billion was borrowed by UK employees from payday loan companies and other similar short term finance companies. With the number of people taking this form of loan quadrupling in only four years – The Guardian

While currently the loans are given by specialist short term finance companies it is hoped that in the near future these loans will also be offered by high street banks.

While many calls have been made to ban the loans, many users of the loans agree that they find the service offers them a certain amount of comfort. While many have people they can rely on to borrow small amounts of money, many do not. While repeatedly taking a payday loan should never be advised it can provide a certain amount of comfort knowing that this finance would be available if required and in emergency circumstances.

People have quoted a number of reasons why they have applied and from these it is easy to understand how a loan until payday may have helped, if not resolved what may have otherwise been an unmanageable situation.

Some reasons given for taking a payday loan.

Broken Down Washing Machine, Vehicle Repairs, Replacing Stolen Money, Unexpected travel expense to attend a funeral, Potential bank charge of £35.

Whether a payday loan is right for you or not I think they will be around for sometime to come. The only advise worth giving is only borrow what you can comfortably afford to pay back. The comfort of knowing it is available should it be required may be all you need to sleep easier tonight.

*Use our quick comparison below or visit our home page for full comparison!

	Lender	Debit Card	Loan Amount	Interest	Documents	Apply
3.	Payday UK	Not Required	£80 - £750	£25 per £100	Not Required	PROCEED
2.	Quick Quid	Not Required	£100 - £150	£14.75 per £50	Not Required	PROCEED
4.	Payday Express	Required	£80 - £800	£25 per £100	Not Required	PROCEED
1.	Payday Bank	Not Required	£80 - £750	£25 per £100	Not Required	PROCEED
5.	Purple Payday	Not Required	£100 - £750	£25 per £100	Not Required	PROCEED

In recent years payday loans have become the short term loans of choice on both sides of the Atlantic, but why?

Speed of application

Most payday loan companies offer a five minute online application that will ensure you do not waste too much time before knowing for sure whether you have been accepted for the loan or whether you will need to look elsewhere. In addition the online payday loan applications are easy to understand and only ask the questions that are required – not like a meeting with your bank manager.

No Credit Checks

There are now a huge number of payday loan companies that will offer you a loan without ever performing a credit search on your finances. Credit checks take time and often delay the payment of loans; you are often requested to give 6 years address history along with proof before this can even be run- People are just no longer willing to go through this process without very good reason.

Easy to understand interest payments

Often when loans stretch out over months or even years it is difficult to keep up with what repayments you have made and what interest rates you are paying. Loans can be especially complex if they are taken on a flexible rate and therefore your repayments change overtime- in an uncertain economy where redundancy is rife it sometimes pays to ensure that you only borrow what you can afford. If you are to be made redundant in 6 months on 24 month loan how will you repay it? By borrowing on a month to month basis you are always sure that the repayments are affordable to your current circumstances.

No meetings to discuss personal details

Bank loans are notoriously difficult to obtain, but the process is made much more complicated when forced to discuss your plans, finances, and other personal circumstances that you would prefer otherwise not to discuss with a total stranger. Payday Loan companies do not ask what the money is to be used for and will only request the information required to adhere to their lending policies as well as other governmental policies to ensure they are only lending to those capable of paying the money back.

No longer needing to borrow money of friends

It is often the case that when faced with a monthly shortfall due to an unforeseen expense people will often be forced to approach either family or friends to ask for assistance. This assistance comes at a cost- even if it is just embarrassment.

Easy & fast cash

Following your application and online acceptance of the loan it is often the case that the money can be paid into your account the very same day or within 24 hours. Conventional loans are often not paid for a number of weeks and when paid are often done so by cheque- not ideal when the money is needed immediately.

Easy repayment methods

Payday loan companies ensure that when you repay the loan it is on or shortly after your pay day. These companies do this to ensure that they do not take the money from your bank at an unsuitable time resulting in further bank charges. You will always know the day the repayment is due and do not have to make the payment manually or over a counter, it is automatically taken from your account – unless you decide to roll the loan over to the following month with just a payment of the outstanding interest.

One type of loan that is reasonable and offers quick relief in times of serious need is a payday loan, also called a cash advance loan. Cash advance loans are a breath of fresh air amongst the lending world, and they are exactly what they sound like. They provide you with an amount of money that is equal or similar to your pay check amount, and you repay the lender when you receive your next pay check or shortly after your get it. The loan period is very short, usually no more than thirty days. They are fast, private, and you do not need amazing credit to be approved. All you need is proof of your regular income, documentation that shows you reside in the UK, and a valid debit account which will be used to deposit your money.

After you find out about the pros and cons of a payday loan, you may want to know which steps you need to take in order to get one. In general, there are five easy steps to securing a cash advance loan and successfully closing the account out once you have spent the money. First, find a reputable lender. There are many companies that specialize in payday loans which have store locations you can physically go to. One of the more popular options is a secure, on-line lender. On-line lenders are the quickest way to get your money because you can apply directly on-line, receive an instant decision, and have your money transferred right away.

Once you have found your lender, you will have to go through a simple application process. You will have to provide proof of your income, residency, and bank account. Next, you will receive your money. Wait until the funds clear in your account, then take the next step- spend it! Use the cash for whatever it is you need. Whether you pay off a medical bill, need to get your heater fixed, or need to make a late payment, the funds are readily available and can be used immediately.

Finally, once you pay for what you need, it is time to repay the amount you borrowed. Although it sounds obvious, many borrowers fail to repay their loan on time or they get behind on the payments and end up racking up unnecessary interest and extra finance charges. As soon as you have the money available to pay the loan back, pay it right away in order to clear your record and to officially close out the loan account. Following these five simple steps will help you make your way through the payday loan process quickly and with ease.

Mortgage loans are very favorable loans and it means that you are really talented and lucky to get it as compared to the other types of loans that are based on the false promises. There is no shadow of suspicion that these loans are very flexible and serve your any purpose for which you are taking the loan. It has been seen that the agencies are really assisting in nature to the valued customers. When you take the loan, you must keep certain things to assess before you finalize the deal with any company. First of all, you must see that the interest rates you are getting on the loan amount are affordable to your monthly income. Secondly, it must be seen that the tenure of repaying is maximum or quite long enough to repay the amount along with the interest included. The monthly payments or installments to the company should also be within a certain limit so that you have no problem in paying the monthly payments.

The lender should have the option of consolidating the loans if you are unable to pay the debt in the specified time period. Also, the rates should be flexible so that you get the appropriate conditions to fulfill your dreams with your extra money. It may happen that when you do not pay the loan in the given time your mortgage will be seized and declared at the verge of foreclosure. You must know the basic credentials of the mortgage loans so that you may not face any difficulty in the future regarding the payment. Basically, these loans are of many types but the most prominent are fixed loans, adjustable loans that are also called floating rate loans. So, you should decide first to get the loan which best suits you. The concerned person must take care of the down payments.