Cash in advance loans in the UK are small, short-term, unsecured cash loans that help people meet their unexpected expenses until their payday. These loans can be used to meet any expense like car repairs, medicals bills, school fees, etc. that cannot be delayed until you receive your next pay check.
People in the UK can opt for a cash advance loan up to £1000 with the repayment period between two and four weeks. These days, it has become very common to apply for the loan through the Internet, which proves to be faster and easier than doing it off-line.
1. The creditors usually have easy requirements. These payday loans can be availed by any UK resident, who is of 18 years of age with a regular income and a current bank account.
2. Cash advances can be applied online. No credentials need to be submitted.
3. No collateral has to be given for the loan. It is issued against the borrowers next pay cheque and has to be repaid on the next pay day. Therefore, these cash advances are also called payday loans.
4. There is no credit check done for the borrower before giving the loan. Because of this people with bad credit history or those facing bankruptcy can also apply for the payday loan.
5. Once the loan is approved, it is directly credited to the borrowers account within 24 hours. Repayment is also in the same way. On the due date, the account of the borrower is debited. If the borrower is unable to pay on the due date, he can roll over the loan for another term for a small fee.
The simplicity of availing cash advance loans has given it wide popularity. However, there are things to be taken into consideration here. These loans are short-term unsecured loans. Therefore they have a reasonably higher rate of interest that the other loans available in the market. If you roll over the loan for another term then a fee has to be paid.
This can make the loan become expensive. Another sore point is that, once the credit is so easily available the borrowers will spend more and incur more loans to pay of impending debts. They will be caught in a debt trap. These disadvantages have to be borne in mind while opting for the payday loan. These cash advances are worthwhile when you need urgent cash and you can pay the loan out of your next pay check.