In recent years there have been a lot of changes in the payday loans market and the banking system. As well as lenders being able to provide loans to a wider range of customers with a more diverse credit history they are now also able to make payments faster. This means for many customers they are able to get the money they need within the hour rather than having to wait until the next day.
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To be able to understand how faster payments are now made you have to understand how the loans process works. Often times there are 3 main concerns for anyone seeking a fast same day loan. In no particular order there is the need for getting their money fast, getting a good deal with loan charges and getting approved. People will often want their money fast as it is often needed to cover the cost of some other urgent payment. Everyone likes a good deal and customers expect not to have to pay over the odds for a fast service. Finally getting approved for a loan is often an issue due to a previous poor credit history.
The first step is the application. You can apply for a loan at any time of the day or night, this does not however mean your application can be processed straight away. There is normally some sort of human intervention to consider every loan application on its individual merits. It is therefore usual for loans made outside office hours to be processed the next morning.
Once you application is received there is usually a credit check that takes place. There may be a traditional credit check or some other way to verify the applicant's eligibility. Although you may see lots of ads claiming no credit checks, a check usually takes place. The term no credit check often refers to the fact that many lenders do not use the credit rating they get back from the check as the major determinant as to whether or not a loan is approved.
The credit checking process should take about half an hour and once approved the payment is processed. Traditionally the BACS system was used but this could take up to 3 working days for the money to show up in your account. The faster CHAPS system took over as it allowed payments to arrive in the customers account the same day.
To meet the needs of customer needing to have the money in their account as quickly as possible many lenders now use the new Faster Payments Service offered by most banks. This makes payments much faster than it has ever been possible to do. The new system works in near real time which means that if you make a payment between bank account they should appear in your account almost immediately.
Due to this new faster payment method borrower can expect to get a payday loan within an hour of application. Good payday lenders are able to offer this service to most people whose banks support FPS transactions and if the application is made during the lenders operating hours. Many lenders now offer extended hours of service with later closing times for processing loan requests.
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