The Payday loan – an easy way to borrow money

The Payday loan – an easy way to borrow money.  You may never have heard of a payday loan, although it is difficult to avoid the many adverts, promotions and offers available both on TV and the internet now.  You can even find out about them in Wikipedia.  But before you apply for credit it is always a good idea to know all the basics.  Payday loans – the advantages.  There are many advantages to payday loans.  To start with, they are easily accessible.  This is the main draw to this type of loan – almost anyone can apply for them as long as they are a UK resident and aged 18 or over.  The amount you can borrow varies, but is usually around £80 – £750.  Therefore, it is great for covering a cost that needs settling now.  Applications are simple and made online for a decision in under a minute.  Any downsides?  There are downsides with any form of borrowing credit.  In most cases, you need to consider that you will be repaying a loan for some time to come.  With a payday loan, the idea is that you pay it back by the time the next payday comes – usually within around two weeks to a month.  However, the APR rate on a payday loan is usually far higher than on a ‘regular’ unsecured loan.  Therefore, you can be paying back a great deal more than you borrowed in the first place.  This also means you could find it hard to come up with the repayment so quickly.  Therefore, it is crucial to consider all the elements of this type of loan before committing oneself.

 Another form of loan which is aimed at a wide range of applicants is loans for people with bad credit.  As their name suggests, they are more than suitable for people who have not got a high or ‘good’ credit rating.  Therefore, credit can be accessed even by people who may have been refused for normal secured or unsecured loans.

Anyone who has had problems gaining credit will adore the prepaid card.  This is a card issued by either MasterCard® or Visa® but is not a credit card as such.  It looks like one and has similar features but holders may not access credit – they simply load the card with funds.  A variant is especially for holiday money: the prepaid FX card, allowing the user to get excellent exchange rates abroad and enjoy wide acceptance.

Similarly to payday loans no credit check, prepaid cards can be used by people who would otherwise be turned down thanks mainly to their low credit score.  But while payday loans are credit – in other words give you access to borrowed funds which must be paid back, prepaid cards will not allow you to go overdrawn or owe borrowed funds.

There are many ways to get travel money best rates.  Simply compare the various offers from companies which provide travel cash, traveller’s cheques and travel FX cards.  The exchange rates will vary both according to provider and according to product.  For the best deal, simply make a note of the rates and additional features which look attractive to you.  Then choose the one which suits you best!