Payday loans are short term loans which a borrower needs to repay to the lender by the next payday. This quick payday loan is a ray of hope especially for the salaried class who keep deferring important expenses till the next payday. One of the main reasons for this delay is lack of enough money in hand.

The need for urgent money in the middle of the month can be for any reason at all. You never know when an emergency will knock your doors. Emergencies can be in the form of urgent car repairs, a sudden tour, a medical emergency or any such thing.

Whatever the reason may be, it is not always an ideal solution to defer the expense until your next pay cheque. Moreover, for such expenses you can’t apply for a loan from the bank as it is a lengthy and tiring process. And at times you are not even in a situation to take monetary help from family member or friends. This is where a quick payday loan can come in handy for you.

You can apply for a quick payday loan for a sum ranging from £500 to about £1000 for few weeks. To apply for this type of loan you just need to have a steady job and a functional bank account. As a borrower what you need to do is issue a post dated cheque to the lender to arrange for automatic debit from the bank account to repay the loan once salary has been transferred to your account.

As for a quick online payday loan there is no need for credit check, people with steady jobs but bad credit ratings can also apply and get benefited form quick payday loans.

A quick payday loan can be very handy in meeting a sudden financial crisis. To successfully apply for this type of loan a borrower needs to have a steady job and a functional bank account as payday loans are extended on the basis of salary.

To repay the loan the borrower needs to issue a post dated cheque or needs to arrange for automatic debit from the bank account to cover the loaned amount and the interest thereof.

In the event of cheque getting returned for any reason, there will be an extra levy of late charges and cheque bouncing charges besides a levy of additional interest. To avoid borrowers this type of situation, payday loan lenders extend the deferral facility where the repayment of quick pay day loan can be deferred by a certain period for a fee if funds are not available for repayment.

In order to convince lenders of job and salary you might be required to furnish bank statement or salary slips for some immediate previous months. However no credit check is done, thus people with steady jobs but bad credit ratings can apply and successfully get payday loans.

Now with Internet based application process, quick payday loans have become truly hassle free way of getting necessary funds. You just need to fill up an online form furnishing details of your employment, bank account and if you qualify on the basis of your salary and job, approval is granted within minutes and money is directly credited into the account within 24-48 hours. In some cases there is not even need of faxing the documents. Thus you can avail of no fax payday loans as quickly as in one day.

Though payday loans are great solutions to fill up short term finance gap, many people are wary of availing this option because of the high percentage fee. Here are some tips to avoid paying overwhelming fees.

1) Avail of Coupons

Companies offering quick payday loans advertise quite frequently in newspapers and online. Usually such advertisements are accompanied by coupons which can fetch lower interest rates on the payday loans. Therefore people interested in availing no fax payday loans should watch out for such offers.

2) Negotiate well

There is a good scope of negotiations if your case is strong. So go all out in negotiating the price of the interest or fee with the lending company. Lenders are here for business and if they feel that you are a good business they will surely sweeten the deal to make you a loyal client.

3) Refer the next customer

Referral can get you reduced fee and lower interest rate, if you are able to get the lending company a new customer. Referral can prove to be one very effective way to save on fees while availing quick payday loans.

It is not hard to find a payday loan company these days. Just type the words ‘payday loan’ in any search engine and you are bound to be flooded with hundreds of quick payday loan options from web sites offering you such loans almost immediately without any hassles. But how do you know that the company you have pinned down is not a scam.

Yes, it is true that while the flourishing business of payday loans has given a chance to the borrower to negotiate the best terms and interest rates, it has also given rise to many frauds. So how do you save yourself from being duped? Here are some tips:

1) First of all check out their privacy policy. Since you would be giving your personal information like bank account number, salary details etc., it pays to know whether the payday loan company has the proper processes and systems in place to keep your personal information private. Privacy policy is the statement of such intentions and it is also a good indicator of the company’s seriousness and commitment. If you have any doubts in this regard, take your business elsewhere.

2) The construction of web site is also an indicator towards the company’s credentials. It is not difficult to judge whether a web site has been made using some sort of online page builder or has a professional touch to it. If it has been constructed using some online page builder, chances are high that the people behind it don’t have good intentions and are out there just to collect valuable personal information for some nefarious use later on.

3) Get in touch with people who have successfully used payday loan services earlier and go for the payday loan company they have used. Also go in depth of the references provided by the web site and check out their genuineness. Past is a good indicator of what the future would hold.

In my last posts I discussed various situations where a quick payday loan would come handy and why it is a better alternative to other options such as personal loans, credit card advances etc. in some circumstances.

Let’s now discuss why faxless payday loans come up as an easier way to get quick handy cash as compared to personal loans in terms of the paperwork involved.

When you apply for personal loan you would need to furnish following documents if you want your application to be successfully approved.

• Personal identity proof such as driving licence etc.
• Employment proof such as company letter or copy of company identity card
• Residential proof such as copy of any utility bill
• Bank statement for the last 3-6 months

After all these documents have been furnished, the bank starts processing the application and might send teams for verification purposes at the borrower’s home or office.

If that is not enough, banks call for your credit report and any negativity in it is likely to ring in the curtains on your chances of approval. This procedure takes 10-15 days and if you are successful you usually need to furnish post dated cheques or arrange for auto debit.

Compare this with faxless payday loans:

• Fill up an online form
• Have a steady employment
• Have a checking account with valid debit card

And your application is approved within minutes with money getting credited into your account in 24-48 hours. Apart from that payday loan companies don’t require a positive credit report as compared to banks where it is a must for getting your loan application approved.

While payday loans are easier to get than personal loans, they are good only when amount required is small and your need is very temporary. This is because quick payday loans are very short term loans and they need to be paid back by the next payday.

Online media abound with negative stories about payday loans like high fees, low amount and debt traps etc. But if there is so much wrong with payday loans, why are so many people turning to it to tide over temporary cash crunch?

In fact most of these stories are based on some myths surrounding payday loans. Let’s do some myth busting here so that people in need of emergency cash don’t desist from taking advantage of such a simple cash solution.

Myth #1 – High rates

If you take into account the annual rate, payday loans sure have high rates, but we are talking about just a few weeks’ time or less (till your next payday). For such short time loans, the rates you pay anyway average around 15 to 30 percent over three weeks’ period. In other words, if you don’t repay the payday loan in stipulated time and roll over repayment over a long period of time, only then would you end up paying really high rates. Not otherwise.

Myth #2 – Credit rating gets affected

Credit ratings can be affected negatively if you take excessive credit from a number of avenues. Since no credit checks are required to avail of online payday loans, there is no question of your credit rating getting affected.

Myth #3 – Payday loans create a cycle of debt

This is certainly not true as payday loans are very short term loans and there are legal limits to the number of deferrals. This prevents this short term loan to become high interest long term loan.

I hope some of your long standing doubts about quick and easy payday loans have got cleared with this myth-busting post. These were some of the most popular myths. I will tackle some more of them in my next posts.

Online payday loans are in fact great way to tide over any emergency cash crisis – no excessive document processing, no credit checks, and cash available in 24-48 hrs. The only thing one needs to do is be responsible and prompt in repaying the loan amount.