Payday loans are a quick and easy option if you are struggling for some cash before payday. The loans are exactly what they sound like – a loan due for payment against your next pay. You do not need to have any security such as a car or property as the loans is unsecured.

Interest rates on payday loans are significantly high and if you already have access to an overdraft facility with your bank that would be a much cheaper option. Payday loans can come with an interest rate of up to 2100% meaning they should only ever be considered as a short-term solution.

Payday loans have a couple of distinct advantages to counteract their high interest rates:

• Eligibility is straightforward: All you need is an open UK bank account with a debit card / cheque facility and a steady provable income.
• There are no credit checks: If you have a poor credit score or CCJs then you will still be eligible for a payday loan as there are absolutely no credit checks.
• Fast way to access some cash: Most providers bacs the cash directly into your account the same working day. The amount you can borrow will depend upon what loan provider you choose but you should expect to be able to borrow between £80 to £1800 depending on your income each month. If you are paid weekly you are still eligible – Most providers make the cash advance payable after the fourth payday.
• There are no awkward questions: Most providers will not ask you what you want the loan for, they are only concerned with whether you are able to pay back the loan when agreed.
• Self employed? – There will be more checks to confirm you do earn a regular income but this should not affect your eligibility.
• Loans are confidential: Your employer should not be contacted and nobody will know that you have taken a payday loan unless you specifically agree to your personal data being shared.

Providers will detail what documentation you need to show to be entitled for a payday loan but generally they will ask for: your latest 3 month’s bank statements, wage slips, proof of address and your debit card.

Payday loans should be repaid when you get your next wage but if something unexpected happens your loan provider may let you just pay your first month’s interest, charge a small additional fee and let the loan roll over to the following month. You can only take out one payday loan at a time.