New Developments in Instant Payday Loans and What This Can Mean For You

 Instant Payday Loans  No Responses »
Apr 252012
 

Applying for and receiving instant payday loans is constantly getting easier. While loan shoppers have always had access to speedy application processes, great approval rates and optimal service, they now have an increased variety of ways in which they can apply. They also have additional loan options that they can select which are designed to more adequately meet the funding needs of individual consumers.

Making Comparisons of Instant Payday Loans

It is important to know which key features will be sufficient for you, before beginning the instant payday loans comparison process.   This will allow you to make comparisons of loans that possess all of the terms and limits that will best help you.  In order to make effective comparisons, you will need to have access to the broadest possible range of payday loan lenders and a clear understanding of your immediate financial needs.

Changes in Instant Payday Loans

One of the major changes in how instant payday loans are structured and in how they are offered revolves around the use of mobile technology.  While loan shoppers have long had access to fax free payday loans and instant payday loans online, technology has allowed for the creation of new methods for making loan offers.  Consumers can now shop and apply for loans directly through their mobile phones.  Because the review and approval process is instant, they can know where they stand in just a matter of seconds even as they wait at the train platform, order coffee or perform any other routine task.  The convenience of these loans exceeds all other offers of this type.  It is important to note, however, that numerous online companies are offering instant payday loans as well and consumers will have much greater ease in screening these offers when applying via the internet rather than through mobile technology.

The Benefits of Instant Approval

People who are suffering from cash flow issues are often unable to make important life plans.  Many of these individuals cannot travel to work in an acceptable manner as they are waiting for funds to make necessary vehicle repairs or to purchase sufficient fuel for traveling this relatively short but daily distance.  Others need these funds to purchase household essentials such as food, medicine and cosmetic or hygiene products.  Being able to get instant approval helps these people to move forward in life.

Many instant payday loans are structured to provide increased access to consumers with bad credit.  In fact, a wide variety of online lenders are even willing to accommodate customers who have existing payday loan debt.  Another major advantage of the increased options that are now available in instant payday loans is higher loan limits, allowing people to access more money in between paydays, based upon the amounts of their forthcoming cheques.  These additional options make it possible for all people to find precisely what they need when shopping for an accessible, affordable funding solution.

 Posted by admin at 4:41 pm  Tagged with: , ,

10 Positive Things You Never Knew About Payday Loans

 Payday Loans  No Responses »
Feb 062012
 

Payday Loans are in the news daily at the moment, but most stories about payday loans seem to regurgitate the same old points. In an attempt to redress the balance here are 10 positive things you never know about payday loans.

1.   Payday loans can be used to rebuild your credit score. If you have a less than perfect credit score the best way to rebuild your credit rating is to show you can use credit responsibly, the quickest 2 ways of doing this are payday loans and a credit card. Credit cards aren’t always easy to get if you have a few black marks but credit history has little bearing on a payday loan application, payday loan providers are more interested in your current circumstances and your ability to pay back the loan at the end of the month. Therefore payday loans can be far more accessible as well as being immediate. Pay it back at the end of the month as agreed and you’ve shown you can handle credit responsibly, do this a few times and you are on your way to rebuilding a healthy credit rating.
2..   Payday loans can provide instant access to cash in an emergency. Many payday loan providers offer a 1 hour turnaround, from receiving your application to getting the cash into your bank account, so when you need money and don’t have time to wait for long approval processes or 3 day money transfer and clearing processes, payday loans can get money, effectively, in your pocket the same day.
3..   You don’t need to go through a credit check to apply for a payday loan. Payday lenders are only interested in ‘can you pay back the loan when you get paid?’ Provided you can show that you can, what you have done in the past is of little importance.
4..   Payday loans give more people access to money and credit than any other form of borrowing. By not running credit checks or being ruled by applicants’ credit history payday loans provide money to many people who would be excluded by many high street lenders.
5..   Payday loans are not more expensive than other forms of borrowing. If you borrow £100 from a payday lender they will charge you £25, so at the end of the month you will pay back £125. That’s an interest rate of 25%. Many credit cards are 26% on purchases, they are much higher on cash advances, some are as high as 46% on cash advances. So if you borrowed £100 on your credit card and paid it back over a year you would pay £146, much more expensive. That’s not even taking into account any late fees if you missed a payment one month.
6..   There are no late fees with payday loans. You pay your loan and fee back when you get paid by direct debit, you can’t forget or be late so there are no penalties, ever.
7..   You can manage your account online so you can always see what you owe and when it’s got to be paid back.
8..   Payday Loans get more flexible with age. Once you have shown you can use the system responsibly you are given much more flexibility, so anytime you need money now and won’t have it till tomorrow or next week you can borrow quickly, pay the bill etc. and pay the loan back days later.
9..   There are no restrictions with Payday Loans. You can use a payday loan for anything you want, they are designed to be used in an emergency, but that can cover anything from a blown boiler to forgotten your mum’s birthday present.
10..   Payday loans are the best and quickest way for many people to get money into their bank accounts. The application and repayment processes are extremely straight forward, making it very easy to get money, pay your bill and pay the loan back shortly after when you get paid.

To read more about payday loans, check out our About Payday Loans page.

 Posted by admin at 8:34 pm  Tagged with: , , ,

When Instant Payday Loans Make Sense

 Instant Payday Loans  No Responses »
Jan 242012
 

If you look up instant payday loans in the press, not very many people have very many positive things to say about them. There seems to be a bit of a bandwagon at the moment and everyone is keen to jump on it, from journalists to MPs, everyone is keen to tub thump about high APRs, suggesting that a high APR makes payday loans an unsound financial move. But APR is a wholly inappropriate measure for instant payday loans, the idea that APR should be used to measure the cost of a payday loan or that a high APR means payday loans are not a useful financial tool are both equally misguided.

Payday loans are intended for use when users need money quickly, for instance a utility bill is overdue and you face being cut off, a credit card bill is due and you face late charges, a cheque is about to clear and you would face unauthorised borrowing bank charges.

Similarly payday loans are intended for when users intend to pay them back in the near future. Payday loans are never taken out for more than a month; multiplying the interest charged to show how much it would cost to take the loan out for a year, therefore, is nonsense, it will never happen.

The best way to determine whether a payday loan is the right tool for your situation is to compare the cost of taking out the loan with the cost of not taking out the loan. For instance, taking out a £100 payday loan for one month would cost around £25, if you compare that with the inconvenience of having your electricity / gas / telephone cut off plus the cost of huge reconnection fees then a payday loan looks like a sound financial decision. Similarly being late with your rent or mortgage payments can not only cost you money but also have a serious and hugely detrimental ongoing impact on your credit rating and your ability to buy or rent a house in the future.

Your financial need doesn’t have to be quite as serious as this though for payday loans to still make financial sense. For instance the end of season sales saw many shoes, coats, bags etc. marked down by well over £100, taking out a payday loan, which might cost £25 or £50 to save £100 or more makes sense, you still save money overall. A payday loan allows you to buy your dream boots now while they are in the sale but pay for them in a couple of weeks when you get paid.

Instant payday loans are a specific tool for a specific purpose, they are intended for when you need money quickly and can pay it back quickly, they offer money to consumers regardless of your credit history, and they offer it without a lot of fuss or form filling. If you need money now and can pay it back at the end of the month payday loans are a great source of cash.

 

 Posted by admin at 9:56 am  Tagged with: ,

Recent Daily Mail Payday Loan Article

 Payday Loans  2 Responses »
Jan 182012
 

I recently found an article on zdnet which seemed to have been instigated by an article on the Daily Mail website.

The Daily Mail article suggested that Wonga a “‘legal loan shark’ [were] offering cash at an astonishing 4,214 per cent annual rate of interest. … as an alternative to Government-backed student loans”

I have a number of issues with both the zdnet and the Daily Mail articles, firstly I can’t believe zdnet are taking their news or inspiration for articles from the Daily Mail, but more importantly I can’t believe they stoop to such band wagon jumping and emotive tripe as “…convincing language, bright colours, and a friendly interface online can persuade people to agree to things against their better judgement” like people are going to take out loans because of a nice colour scheme, who, who takes out a loan because they like a website? People take out a loan because they need money. And people take out a payday loan because they need money quickly.

But the main issues are with the Daily Mail article in the first place. This article waves its hands in the air about the ‘astonishing 4,214 per cent annual rate of interest charged on the loans’, even though it also explains that the interest charged on the loan is actually 30% and APR is only expressed due to legal obligation to do so, not because it is a useful or relevant metric. Why decry the loans because of their APR and in the same article explain APR is irrelevant?

“Offering [payday loans] as an alternative to Government-backed student loans” in truth I don’t think anyone would suggest a payday loan  as an alternative to student loans, but they can work as complementary. Payday loans are intended for emergency money, when other money is unavailable or could not be obtained in the time needed; when student loans are slow or late coming through for instance, or have run out before the end of term.

They went on to say “..the payday loan company is ‘moving in for the kill’ following the Coalition’s shake-up of higher education which will see fees rise to as high as £9,000 a year in the autumn.”

What has the fees rising to £9000 got to do with anything? Students don’t have to pay this, ever! The £9000 figure is what universities can charge the government per student. The students then pay back a percentage of their earnings to the government when they are earning over a prescribed threshold. What they, the students, pay back is unrelated to the fees the university charges per student per subject, what they pay back is only related to what they are earning. Education fees have no relevance to students and certainly don’t have any relevance to students’ day to day expenses.

 Posted by admin at 2:51 pm  Tagged with: , , ,

December is Expensive and January is Long, What can we do?

 Instant Payday Loans, loans to payday, Payday Loans  No Responses »
Jan 092012
 

It’s no secret, December is expensive. Presents, parties, mountains of food, gallons of drinks, it all adds up. Add in the fact that most people are paid early in December to take bank holidays into account and January can be a very long, cold, miserable month. So what can you do to bring your payday forward? Loans to payday can do just that. If January 31st is looking like a life time away and you could do with something to help bring it forward, check out a short term bridging loan till payday.

Loans to Payday do what they say on the tin, they provide you with a cash loan just until you get paid, at which point you pay it back. It’s like having a little mini payday mid way through the month to help you make it to your main payday. Loans to payday are generally provided in amounts from about £50 to £1000 and you can do anything you like with them, pay a bill, buy some food, have a night out, whatever you want. What’s more the cash you need is generally transferred into your account at least the same day if not within the hour.

The unique selling point of these short term loans is really the convenience. Most payday loan providers operate online, recent advances in technology mean loan providers can verify users identity in seconds. Once they know an applicant is who they say they are they can be confident to offer them a loan. This means all applicants need to do is fill in a very simple application form online. The loan provider can verify their identity and approve their application in seconds. Once approved it’s just a matter of a quick bank transfer via the Faster Transfers system to send the money to your account – the money should be with you in less than an hour. The whole process can be done in minutes and the cash can be in your hand later the same day. If you compare this with trying to get a loan our of a high street bank or building society, where the entire process can take weeks and you will probably have to go into the branch at least once, it is extremely convenient.

So what can you do with it once you’ve got it? Anything, fix the boiler, mend the car, take the wife out or buy yourself a present to make January seem a little less dull. The money is yours to do what you like with, it is the same as simply bringing your payday forwards a couple of weeks.

And what about paying it back? That’s just as simple. You get paid and the loan gets repaid by direct debit, you don’t have to do anything. You don’t have to remember to do it, you don’t have to worry about late fees. No stress, no hassles.

Loans to Payday give you the most convenient access to fast cash possible, with very few questions to answer, few criteria to match – you must be 18 or over and have regular income paid into your bank account, immediate cash and simple repayment.

 Posted by admin at 3:52 pm  Tagged with: , , ,

Payday Loans: One fits all solution?

 Payday Loans  No Responses »
Jul 222011
 

It’s impossible not to have noticed the rise in popularity of payday loans in recent years. From a few online ads here and there a few years ago to dominating the TV ad breaks in recent months, the amount being spent on advertising alone is a good indication of the rise in numbers of people making use of these flexible short term loans.

However this very flexibility is also causing concern in certain corners – the argument being that they are so easy to obtain that users are taking them out when other solutions might be a better option. Concerns have also been raised over the relatively large APR figures associated with payday loans as opposed to other forms of longer term lending.

So what are payday loans and what aren’t they?

Payday loans are short term cash loans intended to provide cash quickly and without a lot of paperwork to tide customers over between the end of one pay cheque and the start of the next or to help cover unexpected bills when a pay cheque just won’t go far enough.

So if your car needs an emergency repair to keep it on the road, or you unexpectedly need to replace your boiler or a utility bill is surprisingly high and needs paying before your next payday, payday loans act as an advance on your salary. Borrow a reasonable amount of money, typically between £100 and £1000, in the knowledge that you can pay it back in a few days when your salary comes through. They are easy to apply for and are generally processed very quickly, usually at least the same day if not within the hour.

Payday loans providers generally charge a fixed fee based on the amount you borrow, typically in the region of £30 per £100 borrowed. Effectively you are paying a premium to have access to money very quickly and with a minimum of requirements and restrictions. This premium for convenience means payday loans are not the cheapest forms of finance, generally if users have access to cheaper sources of finance or do not need the immediacy of a payday loan they should exhaust these first.

In addition the fees associated with payday loans are based on users paying the loan back at their next payday, so the loan is never for a term longer than 30 days. This makes payday loans unsuitable for users looking for long term solutions or who are struggling financially. Although some lenders may allow you to extend your loan period you would still be liable for the fees each month, thereby not reducing the principle amount at all. This is where the astronomical APR figures come from. APR is an annualised figure used to compare long term loans, to obtain an APR figure for a payday loan one must take this fee and compound it many times over. This is not how payday loans are intended to be used, the loan should be paid off at month end, not rolled over for anything like a year.

A better comparison might be total cost of the loan. If a consumer borrowed £100 on their credit card and paid it back over a year at 36% APR, the total cost of the loan would be £118.

If borrowing on a credit card were not an option, they could borrow £100 from Top Hat Money. Paid back over the agreed term the loan would cost £130.

If that same user went overdrawn without an authorised overdraft facility the cost would be significantly higher.

Therefore payday loans are most suitable for people with a regular income who have suddenly come up against a shortfall in their cash flow, they are not intended to be used as a long term solution to maintain an unaffordable lifestyle.

 

 Posted by admin at 3:55 pm  Tagged with: ,

Payday Loans to get Interest Rate Cap?

 Payday Loans  No Responses »
Jun 012011
 

Payday loans are increasing in popularity month on
month. Research from MoneySupermarket this
month revealed that there was a 58% increase in demand for payday loans
compared to the same period last year. However they continue to be debt
charities’ and MPs’ whipping boy.

Naysayers point to the high APR values associated with
the loans and many are calling for a cap on interest rates. Payday loans are
aimed at users who need to borrow cash quickly and with little form filling and
no credit checks. Providers charge a fixed fee based on the size of the loan. This
fee is based on the convenience of being able to get money very quickly –
usually the same day and in some cases within the hour – and the increased
risks to the lender of lending to consumers with less than perfect credit
scores. They are short term cash loans intended to be paid back at the clients
next payday, they are not intended to be used to borrow money over periods as
long as a year.

APR, therefore, is not a useful comparison. A better comparison
might be total cost of the loan. If a consumer borrowed £100 on their credit
card and paid it back over a year at 36% APR, the total cost of the loan would
be £118.

If borrowing on a credit card were not an option, they could
borrow £100 from Top Hat Money. Paid back over the agreed term the loan would cost
£120.

There are a number of issues with imposing a cap on interest
rates; where interest rate caps have been introduced in other countries, the
result has been less competition and therefore less choice for users.
Restricting providers’ ability to cover the increased risks associated with
payday loans results in higher costs across the board and in reduced
availability of loans to some consumers, forcing more to use loan sharks.

Reducing the profits involved may also drive providers out of the market, this not only
reduces choice and competition in the sector but also invariably leaves only the
most ruthless providers who may use back-end penalties or hidden costs to claw
back profits leading to reduced transparency and increased risk for consumers.

 Posted by admin at 7:47 am  Tagged with: ,

Faxless Payday Loans Are Coming

 Instant Payday Loans  4 Responses »
Apr 012011
 

Top Hat Money are already able to provide loans almost instantly requiring little or no supporting paperwork. We use cutting edge technology to ensure we can lend safely and quickly all the time, every time. We are constantly and continuously enhancing our systems to ensuring that you, our clients, get the best possible service. You can therefore be assured of the speediest, safest and most consistent service.

Coming next month Top Hat Money will be rolling out one of our biggest updates so far which will dramatically increase the number of people we can loan to without requiring documents to be faxed back to us – making even more of our applications truely faxless payday loans. We will be able to accept esignatures via email and SMS, multiple synchronous communication channels meaning you or we will never miss a message, easy set up and management of payment plans giving you more control over your loan and much more.

The bottom line is Top Hat Money is going to be able to process you loan application faster, get money to you faster and give you more control over your loan going forward. All in all a formidable prospect.

 Posted by admin at 1:27 pm  Tagged with: ,

Huge Boost for Many Tax Payers

 Payday Loans  No Responses »
Mar 222011
 

Thousands of tax payers who owe HMRC underpaid tax could be handed a ‘get out of jail free’ card. A little known clause in the HMRC rule book has already helped a quarter of the 50,000 taxpayers who have tried to use it to get out of paying the underpaid tax they owe. Under the clause, the treasury must give up the tax owed if it does not follow it’s procedures correctly; to follow its rules correctly HMRC must correctly use the information supplied by the tax payer or their employer and it must inform tax payers of any underpayment within 12 months of the relevent tax year.

As we are in the 2010/11 tax year, this means anyone who underpaid during the 2007/08 or 2008/09 years may be able to use the concession, if applicable, as HMRC only informed taxpayers during the second half of 2010.

See the full story here and get ready to be happy if you’re one of the thousands that owe underpaid tax from 2 or more years ago!

 Posted by admin at 10:19 pm  Tagged with: ,

What is a payday lender and how to chose one.

 Payday Lenders  No Responses »
Mar 162011
 

Payday Lenders

What is a payday lender?

Payday lenders are financial lending companies who specialise in short term lending – 31 day term typically. These short term loans are usually referred to as payday loans because the borrower is expected to pay back the loan at their next payday. The application process for a payday loan is very straight forward; payday lenders, therefore, are usually able to offer a simple application form online. Users can apply and get a response in minutes.

Is a payday lender a loan company?

Yes, a payday loan is still a financial loan, albeit over a short, fixed term. So a payday lender is still a loan company. As such they are regulated by the OFT and must have a Consumer Credit Licence. When you take out a loan with a payday lender you enter into an agreement to get access to instant cash for a fixed fee.

Do payday lenders offer any amount of money.

No, typically payday lenders offer loans of smaller, manageable amounts that can be paid back in one repayment. For this reason payday lenders typically offer loans of between £100 and £1000. Top Hat Money offer payday loans to first time users of between £100 and £1000. Once clients see how to use the service responsible they can borrow larger amounts.

How to choose a payday lender.

All payday lenders must be registered with the OFT and hold a Consumer Credit Licence. In order to provide you with a loan, lenders ask for and store some of your personal data. So it also a good idea to ensure your lender is registered with the data protection agency.

Top Hat Money holds a Consumer Credit Licence (645 219)
And is registered with the Data Protection Registrar (Z8927661)

Other things to consider are:

  • How complicated is the application form?
    • We offer a simple application form which collects all the information we need to make an instant decision so we normally do not need to contact you for any supporting documents
  • How quickly does the lender aim to respond to my application?
    • We aim to respond to your application within minutes of receiving your form submission.
  • How quickly does the lender aim to get the money in my account?
    • We aim to have the money in your account within 15 minutes of approving your application.
  • How easy is it to repay the loan?
    • We make it as simple as possible to repay your loan, simply provide your bank details and we will collect your repayment by direct debit.
  • Can I see a statement of account showing what I owe at any time?
    • Yes, you will be provided with a user control panel allowing you to access your account at any time so you always know what you owe and when you are expected to repay it.
 Posted by admin at 12:29 pm  Tagged with: , , ,
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