Payday loans are short term loans that usually have a short repayment period. Borrowers can use them to pay off unexpected expenses that may crop up. 

Since there are no brokers or mediators in the deal, the money is credited directly into the borrower’s bank account. The amount is to be repaid in the following weeks rather than months or years.

This article looks at four distinct advantages of short term payday loans. 

1 – Easy Access

The unique advantage of payday loans is that they are convenient and easy to access. It takes just a few minutes to apply online for payday loans, and money could be credited to your bank account on the same day. 

As payday loans are taken to cover unexpected costs and expenses, such as a home renovation, emergency home repairs or credit card bill payments, borrowers need the process to be completed quickly. Hence, the ease of online transactions is exactly what they are looking for.

2 – Better Protection To Borrowers

In unregulated markets, there is the possibility of borrowers being fleeced by shady lenders. However, FCA regulations protect consumers from any overcharging and other practices. 

As per the regulations, the cost of payday loans is capped at a certain limit.

The lenders cannot charge above the number of fees and interest mandated by law.

3 – Get Approval With Bad Credit

Payday lenders also approve payday loans with bad credit, unlike some traditional lenders. The lenders do check the borrowers’ credit rating prior once the terms having been agreed upon.

However, in the case of payday loans, they are more concerned about the loan’s affordability to the borrowers rather than their past credit history.

4 – Cooling-Off Period

Similar to all financing services that fall under the Consumer Credit Act 1974, payday loans are subject to a 14-day cooling-off period. 

During the cooling-off period, you are entitled to cancel the agreement within 14 days of signing up for the loan contract.

Cancellation of a payday loan, the loan amount, and any accrued interest have to be repaid. However, the lender is bound to refund you for any charges or fees paid by you.

To summarise, payday loans are a good option for short term loans for your immediate needs if you are pressed for cash. Regulations safeguard the borrowers’ interests, and there are no fears of being overcharged on repayment.

You can get approval on payday loans even with bad credit. Finally, you can cancel the loan agreement within the cooling period, and you will be reimbursed for any charges or fees incurred by you.

In case you are looking to avail of short-term payday loans with no credit check, please click here.

Ewan Andrews is the author of this article. To know more about Payday Loans Online in Wakefield. Please visit our website: theonestopmoneyshop.co.uk