Payday loans have been around for a while and are well established in The United States but over here in the United Kingdom they are only just really becoming more popular and more widely available. There are many providers who make these sorts of short term loans, typically being lent for a period of up to a month, available both from the high street and more typically over the phone or on the internet.
Debit card loan requirement
Typically you will find that you are required to provide a certain amount of information to the lender if you expect them to lend you money. No one is going to lend someone money without proof of who they are and without some means of being able to pay the loans back.
Payday loans are often also referred to as debit card loans because a debit card is required as part of the evidence for acquiring the loan and also as a means to repay the loan back to the lender. The problem occurs when the person needing to borrow the money does not possess a debit card. Whilst debit cards are quite popular in the UK they are still not as widely held and used as credit cards.
No debit card loans
There are now ways you can still get a payday loan without having a valid debit card. Some providers now allow you to use alternate means of repaying your small short term loan. Whilst the need for a debit card has been overcome you are still required to provide the standard information most lenders require.
As we mentioned you need to be able to prove your identity and also provide a means to which you can make your repayment. One of the major benefits of applying for a loan online is that you do not have to fax or post any documents. You are also notified very quickly as to whether you can be approved based on the information you have given in the application form.
Typically you will need to be at least 18 years of age and be employed, usually for at least 3 months where you are earning over a thousand UK pounds. You will need to provide your bank account details as this will not only provide part of the information required for your application but will also be the means to which your loan will be transferred to you.
These convenient loans are called payday loans, they are also referred to a debit card loans because of the method that is often used to repay the loan. In North America these types of loan are common place and are more often referred to as payday loans. In the United Kingdom they are more often referred to as debit card loans rather than payday loans.
What are payday loans
Payday loans are short term unsecured loans that are typically obtained from specialist lenders but not the high street banks. You may find you have a payday loan lender in your town but typically lenders operate online to reduce cost and provide more competitive rates. As these loans are not secured against your home they are considered a safer form of borrowing if you do not want to risk your house.
The reason this type of lending is available is that it caters for people who may not have a squeaky clean credit record. You may have adverse credit or a bad credit history and still be able to borrow money. Payday loans are only usually available as a short term loan typically for a period of no more than a month.
They are intended as a form of emergency borrowing where you may not have enough of your monthly wage left to pay for the emergency. If for example it is the middle of winter and you find that your gas boiler stops working you will have to call out an engineer. You may find that it is going to cost to get it fixed, you haven't enough cash to pay to get it fixed so you need to borrow money fast. In this instance a payday loan would meet your requirements.
Getting a loan without a debit card
It is usual practice to pay back your loan once your next monthly wage is paid into your bank account. This repayment is organised at the time you applied online for your loan. The method of repayment usually required by most lenders is that you supply your debit card details so the money can be repaid at a specified date straight from your bank account via your debit card.
The problem comes when you need a payday loan but you do not have a debit card. Whilst many lenders will turn you down there are some financial organisations that will lend you the money as long as you meet all the other criteria. Instead of repaying the loan via your debit card an alternate method is arranged for you to settle your debt at a prearranged date.
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