Cash advance loans have been around for quite a while, and are by no means a fresh endeavor. They have been, however, rejuvenated as an industry as the business has moved away from going on in physical shops and moving quickly towards being an exclusively online marketplace. This is a perfect paradigm for such a useful financial tool as payday loans because it makes the loans available to a much wider demographic. It also decreases the amount of money that is needed for these shops to spend on marketing and sales, so that they can offer the loans at a lower rate. Why might these shops have any incentive to offer their loans at a lower rate? The answer is simple. As the business moves online there are fewer and fewer operation costs. That means that the profit margin increases, incenting more and more people to enter the payday loan game.

As more entrepreneurs enter the market, the profits will decrease as each lender undercuts each other to gain more business. As they do this, profits, and interest fees applicable to the loans, decrease, leaving the consumer of payday loans as the victor in the situation. Because the borrower is the one who wins in this case, people applying for cash advance loans can feel that much better about their decision to take on short term debt.

The component that may be most important to potential borrowers of short term credit through cash advance loans is that many do not require any credit check whatsoever. These no credit check loans make them perfect as bad credit loans. This is great because most people who have what regular creditors would consider “bad credit” have that title because of only a couple mess ups. These mess ups should by no means restrict a person from being able to gain access to some form of credit if they are in a time of need, or simply find themselves in a position where they can without a doubt handle the debt that they wish to take on. Thankfully, payday loans can offer this. The tradeoff for such people is that payday loans have a higher interest fee than you might find on credit cards or other forms of credit.

*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.

In the late nineties two types of bad credit loans were introduced in the US that required no credit checks, these type of loans would later be introduced in the UK.

Payday Loans

Payday cash advances are loans for a period of thirty days or less and usually require no credit checks, however they do require you to be employed and have an active debit card. If you meet the minimum criteria it is likely that you will be offerred guaranteed acceptance. Charges for these type of loans vary but are usually approximately £25 for every £100 borrowed.

Logbook Loans

Logbook loans are the UK’s version of title loans. Although these types of loan require no credit checks they do require you to use your car as security. In most cases your car will have to be under 10 years old and clear or almost clear of finance. Logbook loans are also available over a longer term and can be taken over a period of up to 2 years.