The idea of taking out a pay day loan is a relatively new concept. You don’t need to go back many years to find that nobody had even thought of introducing such an idea. It was simple. If you needed to borrow money for any reason then you just approached your bank. The process involved making an appointment – for which you might have to wait several days for an available one at a convenient time, bearing in mind that banks used to shut their doors at 3.30 each day making your lunch hour the only time possible. Then with a member of staff you had to fill out a lengthy application form and give a valid reason for wanting to borrow the money. If the reason was not considered suitable, and just having a cash flow problem would fall into this category, then the loan would be turned down. If you got past this stage then the application then had to be sent off to another department of the bank to be approved. All this took time.
It could be up to a week before you got an answer, which was quite stressful if the money was needed urgently.
Well, gone are the days of waiting. Today, answers are needed right away, and thankfully in these days of modern technology then that is exactly what happens in most cases. If you contact a pay day loans company such as Kwikcash then you are going to be kept waiting for the minimum time possible. You are going to know whether you have been successful or not the same day. In fact if the matter is of great urgency, then in some cases you can get an answer back and the money paid into your bank account in just one hour.
A far cry from the old more traditional system. For obvious reasons, you need to already have a bank account and by law you need to be over 18 years of age, as with all types of borrowing. These kinds of loan are also ideal for anyone who doesn’t have a perfect credit score, as due to the short term nature of them they don’t pose quite the same risk to the company as say a loan with a five year repayment term.
Another advantage is that although the APR may seem steep at first glance, then in real terms the charges are reasonable due to the short term nature of the deal.
Kerry Wilson a finance expert writes blogs on behalf of Kwik Cash.