The UK Government has taken measures to transform the country from a high tax, high social welfare and low wage country to a low tax, low social welfare and high wage country. As a result, welfare payments are being reduced. This is where payday loans are proving to be a huge help.
What are payday loans?
Payday loans are one of the most popular ways of getting quick short-term loans in the UK. They are provided quickly and don’t require much paperwork. People with no credit or a poor credit score may get these loans, provided they have a regular source of monthly income.
Payday loans vs bank loans
- Quick loans: You can get payday loans quicker than bank loans. The lending company directly credits your bank account with the agreed amount. The application process doesn’t take long and isn’t very gruelling. Just show the lender proof that you get money every month, and that you will be able to pay back the loan amount with interest.
- No need for much paperwork: Payday loans barely require any paperwork, whereas bank loans take a long time to process and require the borrower to provide many documents. These documents need to be verified, and a credit check has to be carried out on the borrower.
- Payday loans will save you from late fees: Generally, if monthly bills are not paid on time, the user will have to pay fines in the form of additional fees. If you avail of payday loans, you won’t have to default on payment of your bills.
Opting for a payday loan might be one of the simplest ways to cope with fund shortage. Make sure you use the allthelenders website, the UK’s first price comparison site for payday loans. The site is authorised and regulated by the FCA, and takes pride in providing independent results.