Everyone must have heard numerous rumours about the payday loan industry and how it tries to trap the borrowers in a cycle of debt. These rumours and myths have created a negative image of payday loans in most people’s minds. There is a need to dispel some of these myths to help people realize that payday loans can prove to be an excellent financial support in emergency situations. We are busting some of the most popular and most heard myths about payday loans.

1. Payday Loans - Myths Busted!
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Everyone musthave heard numerous rumours aboutthe paydayloanindustryandhow ittriesto trap the borrowersina
cycle of debt.These rumours and mythshave createda negative image of paydayloansin most people’sminds.Thereis
a need to dispel some of these myths to help people realize that payday loans can prove to be an excellent financial
support in emergency situations.
We are busting some of the most popular and most heard myths about payday loans.
Payday loans trap the borrower in a cycle of debt
Thisisthe numberone mythaboutpaydayloans.Itis importanttorememberthatpaydayloanissupposedtobe ashort-
term loan.It does not functionlike along-termbankloan or a long-termcreditaccount.Payday loanis to be paidoff by
the borrowerwhenhe or she receivesthe nextpaycheque.If a borrowerfailsto pay back the loan withinthe due date,
then he or she can rollover the loan by paying a fee.
Vast majorityof people whoobtainpayday loansmeettheirloan obligationswithoutfacinganyfinancial difficulty. Very
few people get trapped in this cycle of debt because of their mismanagement of financial issues.
Payday loan companies prey on poor people
It is a common assumption that payday loan companies target poor and destitute people who are vulnerable to get
trappedinthe cycle of debt.Infact,paydayloansare onlygrantedtothose individualswho haveasteadyincome.Payday
loancompaniesrequire thatthe applicantmusthave anactive bankaccountwitha validdebitcardinorder tobe eligible
to get a loan.
Payday loan interest rates are too high
Many people believe thatpaydayloancompaniesprovide loansata higherinterestrate than othercreditproducts. This
is true;a payday loandoeshave a higherinterestrate thanothercreditproducts.But a paydayloanis a short-termloan;
therefore, a payday loan lender is exposed to a greater risk as compared to a long-term loan lender.
Payday loans industry is not regulated
Thisis nottrue.A paydayloanlendermusthave an Officerof FairTradinglicense toofferconsumercredit.Advertisingof
payday loans is regulated under Advertising Standards Authority that requires all lenders to state the APR rate in their
adverts.
Payday loan lenders do not check credit history of the borrower
This is a myth that encourages individuals with bad credit history to obtain payday loans. It does not make sense that
paydaylenders offerloanstothose people whocannotaffordtopay it back.All paydaylenderscarryout the same credit
checks as other long-term credit providers such as bands and credit card companies.
Most of the negative things associated with paydayloans are essentially myths. Obtaining a payday loan from a reliable
payday lender does not expose you to any kind of risk of getting trapped into a debt cycle, provided you pay back your
loans on time.

2. Regulation: Trusting the Lender
It wouldbe an understatementtosaythat bothpaydaylenderandpaydayloansismuch malignedinstrumentof debt,if
the naysayershadit theirway,theymightas well call itthe instrumentof death.
Certainly,there isnoglamourinvolvedinlendingtothose whoare poor, distraught,andinimmediate need.Maybe that
iswhy ourlarge creditunions,bigbudgetbanks,andcreditcardcompanieswill noteventouchthese clientswitha
barge pole.The paydaylendersare the onlyonesthrowingalifelinetotheminreturnof higherthan usual interestrates,
onlybecause the clientsare notusual themselves,typically.
The Regulation in Place
Paydaylendersare subjectedtostrictregulationalready.Forinstance,advertisementsof paydayloansare subjectedto
ConsumerCreditRegulations,whichwere introducedin2004. Asa result,all lendersare obligatedtomentiontheirAPR
inadverts.To prove that itis working,andthe governmentactivelyweavesoutthe phoniesandthe fraudulent,there
have beenseveral incidentswhere the ASA hasactedonthe complaintsagainstadvertisingbypaydaylenders.
Furthermore,underthe ConsumerCreditAct of 1974, each lenderisexpectedholdalicense issuedbythe United
KingdomOffice of FairTradinginorderto offerconsumercredit.The ConsumerCreditAct2006 statesratherexplicitly
that the OFT will considerirresponsible lendingextremelystrongly initsoverall evaluationof whetheralenderisfitto
holda license ornot,and lackof compliance willleadtoseizure of the license.
Importance of Payday Loans
Paydayloansserve a veryimportantpurpose of fillingthe greatvoidcreatedbyorganizationsunwillingtoloanoutto
those inneedof financial help.The regulationinplace iscomprehensiveenoughthatthe lender’strustisalreadyatan
all time high.Overthe past5 years,paydayloanshave become the mostpopularformof debtinthe countrywithmore
than 5 millionpeople takingadvantageof the quickrequisitionandaccessto fundstheysodesperatelyneeded.
Anyadditional regulationmaystarve those wholarge organizationsdare nottouchfor help.Furtherregulationwould
impactthe processandaccess to capital forthe workingclassmenand womenof the countrywho needitthe most.
Seriousmovesbythe governmentcouldsendthese peopleintopoverty,consequentdesperation,andevencrime and
homelessness.Suchdownwardspiral shouldbe avoided.
Conclusion
Empirical evidence suggeststhatwhengovernmentsregulate the financial sectortoomuch,anddo notprovide an
environmentthatfacilitatesthe flowof cash,economiessufferfromlethargicandsloweddownratesof growth.Small
businesses,low-incomeearners, andpeople wholiveondailywagesare the life andbloodof the economy.These are
the people behindthe wheelsof the economy,andtheirfinancial viabilityandvitalityreflectsonthe healthof the
economy.Unfortunately,those whorecognize themare the verysectorthe governmentcouldstifleif theyregulate
themfurther,aslarge corporationswill notevendare helpthese people.

3. How Do You Know When Your Payday Lender is
Ripping You Off?
Paydayloans,shorttermloansor cash advance,regardlessof whatthe lendersare callingit,are easyto getapproved
loansof up to a £1,000 that needtobe paidoff in 3 months’time.The conditionsof course vary,andso do the interest
rates,clauses,paybackoptionsandthe comfortthat these loansprovide.Needlesstosay,paydayloansdoofferthe
much neededsolutionintimesof emergencies;however,youneedtofindareliable lenderofferingadeal goodenough
for itto work outin yourfavour.Followingare a numberof keypointsyouneedtoconsidertomake sure that your
paydaylenderisn’touttorip youoff:
Opt for Trusted Lenders
Thismightseema little tooobvioustostate,butthese lendersare notso apparentto spot,andso you needtomake
extraeffortstoensure thatthe lenderisreliable.Online paydayloansare relativelyeasier.Youcanapplyandget
approvedwithouthavingtomake multiple tripstothe lender.More andmore paydayloanwebsitesare poppingup
each day,but notall of themofferreliableloans,orare evenlegit.Keepinmindthatyouwill be givingawayyour
personal informationaswell asyouraccount details,soyouneedtomake sure youaren’texposingittothe threatof
identitytheftorfraud.
The bestway to finda legitlenderis toapplyfor a loanthrougha broker.These brokershave alreadycheckedforthe
lenderscredentialsandwillmake sure thatyourapplicationishandledbytrustedproviders.
Understand the Total Cost
You hearall the talkaboutAPR,but that’snot the onlyway to assessthe total cost of a loan.Just because alenderis
offeringthe lowestinterestrate doesn’tmeanthathe/she isofferingthe cheapestoverall costof the loan.Sneakycosts
like upfrontfeesandstringentlate paymentfeesandinterestratescancost youa lotmore in the longrun. Somake sure
youcalculate the total cost of the loanofferedbefore applyingforit.There are plentyof websitesofferingpaydayloan
calculatorsto make iteasierforyou to calculate the total cost.
Compare Various Lenders
Rule of thumbis to compare betweenatleastthree lendersbefore decidingonone,butyoudon’tnecessarilyhave to
stickto three,compare thirtydifferentlendersif that’swhatittakestomake a more informeddecision.Simplycalculate
the overall costof eachloan,includingthe fees,andthe probabilitiesof late paymentsandhow mucha late payment
will costyoubefore decidingonalender.
Paydayloansforthe mostpart are emergencyloansthatyouneedapprovedandtransferredinstantly,butdon’tletyour
immediate concernsandneedsovershadowyourjudgmentorignore the longtermrepercussionsof stickingtoa payday
loanthat will become aneverincreasingliabilityratherthana shortterm solution.

4. Your Short Term Loan Questionnaire
Will I Get a Loan?
Afterthe infamous‘Tobe or Notto be”, thisisusuallyone of the biggestquestionsalmostall of usaskourselvesfrom
time to time.Shouldyouapplyforaloan?And if youdo, whatare the chancesit wouldbe accepted.The answertothis
questioncouldrequirea15-page report if youare applyingfora traditional loan.The bankwould,of course,needtodo
a thoroughbackgroundcheck,check yourdebt-to-income ratio,digintoyourcredithistory,lookatyourcurrentjob and
perhapsevencheckforthe status of your personal relationshipstosee if there are anyproblemsbrewingathome that
couldleadto alimonyorchildsupportconcernsinthe near future.
In short,whetherornot yougetthe loanwouldrequire possibly athree monthlongscrutiny periodfollowedbyatwo
monthprocessingperiodandthenfinallyyourloanisapprovedanddispatchedandyoucanfinallybookyourticketsand
headoff to Chinafor the 2008 Olympics.Perhapsyouwouldneedtoinvestinatime machine first!
Fortunately,shorttermloansdon’tcome withall the dumbbellstoweighyoudownbutsurelycome withall the
whistlestosingyourwaythroughyour cash crunches.Butthe questionstill remains:wouldyourloanevenbe
approved?Here’saquickquestionnaire tohelpyoufindthe answerswithinminutessothatyoucouldgetyour handson
the loanwithinhours:
Do You Have a Job?
Short termloansor paydayloansare usuallyonlyavailable tothose withastable monthlyincome.Lendersrequire proof
of regularincome orsalarywhichdoesn’tnecessarilyneedtobe froma regularsalary.Evenif you don’thave a proper
job,youcould still getapprovedforthe loanif you have proof of any disabilityincome,alimonyorevenproof
unemploymentincomewouldsuffice.Yousimplyneedtoprovide substantialproof thatyougenerate monthlyincome.
Do You Have an Acceptable Credit Score?
Unlike traditional loansthatrequireaclose-to-perfectcreditscoresandcredithistory,youonlyneedasubstantial
numberwhenyouare applyingfora short termloan.So evenif youhave a not-so-awesomecreditscore,your
applicationmaystill be approved.
Do You Need a Loan of £1000 or Less?
Quickloansare designedtocaterto some shorttermcash crunches.For instance,if youare fallingbehindonyour
mortgage instalmentshadamedical emergencyorcan’twait until nextpaydaytogetyour handson the new
PlayStation.
Can You Pay the Loan Back Within Three Months?
Short termloansare usuallylentfor,well,the shortterm.Paydayloansare generallypaidbackonthe nextpay dayor
withinthree months.Interestratescanspike upif youare unable topay the loanon time andit couldendup costing
youa lotmore.So onlyapplyforthe loanif youknow you’dbe able to payit back relativelyquick.
If your answeris‘Yes’to all of the above thencongratulations,youare onlyone stepandonlya few hoursawayfrom
gettingyourhandson yourshort termloan.

5. The Process of Obtaining Short Term Loans
Short termloanscan be extremelybeneficial whenitcomestodealingwithimmediatefinancerelatedissues.Such
issuescanemerge anytime,leavingyouunaware of yourfinancialrequirements.Whatdoyou dowhenyouare
suddenlyinneedof money?Doyoupanic?Ordo you thinkof a solution?One of the bestsolutions,whichyoucanuse,
isthe shortterm loan.
Short termloansare consideredaneffectivewayof dealingwithimmediatefinancial problems.Oftenstudentsare
worriedabouttheirtuitionfee andthinkof takingupa loan.Insuch cases,short termloansare a greatway to acquire
loans.Thisisbecause ithelpsthe studentsensure thattheydonotfall behindonmakingpayments.
So the questionthenarises,howdoyouacquire shorttermloans?Here isthe process.
Get Help
The firstthingthat you needtodo isget helpfromyourfinancial aidoffice.Thismeans,askingthemthe correct
procedure of applyingforthe loan.Theywill guide youregardingthe requireddocumentation,whichmustbe processed
before youcan be eligible forthe loan.Therefore,itisalwaysagoodideato ask fortheirhelpandguidance as theyare
ina muchbetterpositiontoexplainwhatyoushoulddo.
Consider repayment Options
The nextthingyouneedto dois have a back plan.For what,youmightask. You shouldhave itforrepayingthe loan.
Nowthat youhave made the decisionof optingforaloan,it becomes veryimportantthatyoustart discussingdifferent
options,usingwhichyouwill repaythe loan.Thisisveryimportant,asyouwill be requiredtopaythe loanwithin90
days,fromthe dayyou receivedit.Duringthisperiod,youwill alsobe requiredto agree torefrainfromoptingforany
otherkindof studentloan.
Therefore,take adecisionaftercareful considerationof the consequences,andmake sure thatyouknow howyou will
repayyour loan.
Interest
On mostof the shortterm loansthat are offeredtostudents,the interestratesare low,makingthemafeasible option
for students.Withparttime jobs,itbecomeseasierforstudentstorepaythe loans,while payingthe interestonit.
Whenyoucompare these loans,tosome of the loansofferedbyfinancial institutions,theyare consideredtobe far
better.Simplypayoff the original amountwiththe interestandyouare free.
So make sure that youcontact the rightauthorityforacquiringstudentloans.Shorttermloansare all youneedto pay
off your fee forthe semesterandthenrepaythem.Make a planon how you will meetthe requirementsof the loanand
pay itoff.Thiswill helpyouinbeingpreparedforthe paymentseverytime youneedtopayit.
Nowthat youhave understoodthe procedure, donothesitate;justapplyforashort termloan.

6. How to Find the Best UK Pay Day Loans
Services
Paydayloanshave become quite popularrecently,andforthe rightreasons.Theyare much easierandfastertoget
approvedandhelpyoutake care of your financial situationrelativelyeasily.Butwhathave become equallypopularare
shams, cyber-crimesandsecuritybreaches.Paydayloansmightofferyouthe breakyoudeserve,buttheyare onlyworth
it if youfindthe rightloanservice.FindingpaydayloansinUKisa relativelyeasytask,butfindingareliable one isthe
trickybit.Followingare fewchecksandprecautionsyouneedtotake tomake sure your paydayloanservicesare worth
your trustand time:
Referrals
The bestway to finda reliable service istolookforreferrals.Askaroundif someoneyouknow hasrecentlytakena
paydayloanusingonline services.Askabouttheiroverall experience.If youare hesitanttospeaktosomeone regarding
paydayloans,a simple online searchwillhelpyougetagoodideaaboutthe toponline lendingservices.There are plenty
of online review sitesandforumsthatshare goodand more importantlybadexperiences.Youcanalsocheck websites’
testimonialspage tosee whattheircustomershave tosayabout theirservices.Investingalittle time inresearchwill
helpyouavoidthe longtime hasslesof gettingcaughtupina loansham.
Interest Rates and Policies
Interestratesandothertermsand conditionsare veryimportant whenevaluatingdifferentpaydayloans.Youshoulddo
a researchregardinghowa loanwill costyou intotal and read the termsand conditionsthoroughlytogeta better
understandingof whatyouwill be agreeingto.Don’tjustfall fornumbersandpercentageshighlightedonawebsite but
use online paydayloancalculatorsordothe mathto figure outthe complete costof a loanbefore decidingona specific
service.
Red Flags
What kindof certificationsdoesaparticularlenderhave?Isthe lenderaskingformore detailsthanare necessaryto
approve yourloan?You shouldalwaysbe onthe lookoutforredflagsto indicate badservice.The objectisnotjustto
finda secure service butalsoa reliable one.If theyaskforsecuritypasswordsand/orif their responsesare delayed,you
shouldnotconductany businesswiththem.
Customer Support
Customersupportiscrucial indeterminingthe overall service thatalenderprovides.Tryemailingorcallingthe service
providerformore informationandsee how responsivetheyare.A reliableserviceproviderwillnotonlybe friendlyand
supportive,butalsoinformative.Goodcustomersupportisnotonlyimportantwhenapplying,butthroughthe whole
processas theyare the onesyouwill be dealingwith.Soif a service doesn’toffergoodcustomersupport,itistime to
lookelsewhere.
The bestway to findpaydayloansinthe UK is to lookfora reliable service providerthatofferspaydayloansfrom
numeroustrustedlenders.Thiswayyoucanensure that youfind the bestdealsfromapprovedandreliable lenders.
Givingoutyour personal andbankinformationisariskybusiness,anditisupto you to make sure that youtrust the
rightservice withit.

7. Where am I able to gain free independent advice?
If you feel thatyourfinancial situationwarrantsfurtheradvice before youmake the decisiontoapplyfora loan,youcan
obtainthisfromthe CitizensAdvice Bureau orfromdebtcharity StepChange.Theseorganisationshave experienced
advisorsthatwill be able tohelpyouwhilstalsokeepingyourinformationconfidential.
Let Us help you find the right loan!
Try our Clever Search Tool at https://quiddicompare.co.uk/search/payday-loans
One Quick and Secure Application! Apply to all the lenders in the market instantly.
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