At one time or another most of the UK population has taken out some kind of loan. It may be as simple as borrowing a few quid from a friend or relative or it may be as major as taking out a mortgage.
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The result is always the same, you are borrowing money and there is usually an agreement at the time of borrowing to agree on a repayment date and the cost of the loan. There are a couple of ways that authorised and legal lenders charge for the service of lending. It will either be by setting an interest rate or by charging a fixed fee. Interest rates are usually used when you are borrowing over the longer term whilst fixed fees are used when you borrow money for a short period of time. A payday loan usually attracts a fixed fee, this is good for short term loans as you know exactly how much you are going to pay back. On the agreed repayment date you will repay the loan plus a fee.
There are several requirements that lenders put in place before they can approve a loan. The reason for this is that they want to get their money back and a person who is unlikely or unable to repay the money that they want to borrow is going to cost the lender in lost profit.
Payday lenders are different in the way that they approve loans. Most lenders will carry out a credit check and will approve or refuse your application based on your credit record and credit rating.
Instead of using the credit rating system payday loan providers make their decision based on your current ability to repay any monies borrowed. This means that people who have previously been turned down for credit can still get a loan, this is an invaluable service for people with a poor credit history.
A no debit card payday loan is a payday loan where no debit card is required for your loan to be approved. Many lenders insist that you have a debit card in order to borrow money, this is part of their approval process and the way many lenders use for their customers to repay their loan. No debit card payday loan providers use alternate repayment processes such as direct debit instructions so you do not need a debit card in order to get a loan.
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