How does payday loans work? The idea behind payday loans is that they are there to be used for unforeseen crisis, "because money is tight for everyone right now, as many do not have an institution of excellence and / or can not get a credit line from High St Banks. The time the loan covers is expected in rule is days or weeks and no more than one month, the maximum amount will be the full amount of monthly salary, but it is not uncommon for any of the companies to offer a higher amount. Payday loans can be approved within thirty minutes to one hour. The only criteria are that you are in full-time employment and you have a bank account. The process does not need a credit check and the only testimony required is a driver's license, a statement of accounts, an insurance bill with your current address and the latest payrolls. The usual action is when the loan is approved, you give them a post-check that they will pay on your payday, if you are in a serious state, it is possible gt to roll over the loan to next month. This is not advised but for reasons you will soon read.
The Benefits of Payday Loans: The widespread perception is that if used smartly and for occasional situations while budgeting properly, they can be an effective tool and transfer to the next payday. To show how hate payday loans are in the media, the argument to their advantage is actually more defense of the heaviest criticisms, which is inevitably centered on the APR payroll period. Wonga.com is generally considered to have one of the lowest APR rates at 2 689% (at the time of writing) and is classified as the most "ethical" of payroll companies. Such a big APR will obviously drive people away, but when you look under the hood it's not as annoying as it seems, initially, APR stands for "Annual Percent Rate" as the keyword is annually here. It is difficult to determine the exact average of the interest rate because it merges in April when the loan will only be for a few days or weeks, but it's about a third of the borrowed amount, for example, we aim to use 30 % as mock up the interest rate. So for every