Due to high interest charges Payday loans should only be used as a short term borrowing solution. If you are struggling with debt then contact the National Debtline for free advice and help.
The facts behind £100 pound loans
Short term loans until payday
If you have poor credit, then even borrowing a small amount from a bank or building society can be impossible. You may be rejected even for relatively small amounts, even down to just £100, and even for the short term. If you can’t get the loan that you need from a bank, then you may consider turning to a payday loan company as your only option. While most advisors would not recommend taking out a payday loan, since their interest rates are very high, when you have no other option these loans can get you the money you need without having to wait for your next wage payment.
Can I get a loan for £500?
One of the best things about payday loans is the fact that they are able to offer you relatively small amounts for your wage. If you want a £500 loan, then you can choose to get the loan in several different ways. Firstly, you can apply for a loan through a standard payday loan company. They are likely to offer you this loan for a single payment within a month from the date you receive the money, with a high percentage payment – sometimes as much as £25 for £100. You may also choose to borrow the money through a different type of payday loan, who will offer you the money for three months. You can then pay off the loan gradually through three separate paydays, allowing you more time to get the money together. This is the perfect solution if you want to be able to get a reasonable loan for a small amount, and are able to pay the amount back within a month or within three months.
What are the advantages of payday loans?
There are several reasons why people are still using payday loans rather than simply relying on banks or waiting until their wages are paid. Firstly, payday loans for small amounts can be ideal if you need the money quickly, for example if you have to have emergency repairs to a car or home, or if you need an item fixed inside the property. Payday loans are faster than a bank loan, and can be agreed on the same day, which makes them extremely convenient. Bank loans are much slower, and with the risk of the application being refused, many people are not prepared to wait.