The ‘guaranteed payday loans no credit check’ in the UK came into existence with the introduction of Consumer Credit Act 1974. The direct lenders had to have a lending licence from Office of Fair Trading (OFT) until 2014 when OFT was dissolved and its responsibilities were transferred to Financial Conduct Authority (FCA). Today, Consumer Finance Association (CFA) is the major trade association serving and protecting the interests of licenced short-term credit providers in the UK.
Market Overview of Guaranteed Payday Loans:
Since its conception, the payday lending in the UK has been and is expected to continue to be a big issue drawing the wide scale attention of media, borrowers and Govt. political circles. The intensive competition benefits the consumers more. In an online functional market, the competition encourages the lenders to keep the offered prices bare minimum. The direct lenders are continuously engaged in innovation and improving the services. There is high demand for short-term small amount credit that borrowers prefer to meet out their intermittent unexpected expenses.
The payday loans, the most popular unsecured short-term loans, are generally taken for maximum 12 months or less. According to a survey conducted in 2017, the average ‘guaranteed payday loans no credit check’ are of £260. The most of the payday loan borrowers apply for £1,000 or less. As the popularity is going high, the direct lenders are widening the product gallery under this category. As a result, borrowers have options to choose ‘traditional payday loans that are repayable in single installment within a month’ or longer-term loans that can be repaid in number of installments stretched up to 12 months.
Floating Demand of Guaranteed Payday Loans for Bad Credit:
The fastest growth of payday loan market was noticed between 2008 and 2012; the total payday loan market was of around £1.1 billion. The most of payday loan customers almost 83% prefer to borrow online, while just the 29% customers approach the financial institutions on high street. The interesting fact is that the average requirement of borrowers approaching to high street financial institutions is less ((£180) than the borrowers approaching the private lending agencies online ((£290). The introduction of new FCA rules regarding CPA use resulted in higher rejection of applications.
According to a survey conducted in 2017, workers in public and private sector apply more for short- term guaranteed payday loans for bad credit payday loan loans. The demand of short-term payday loan is expected to go high in the coming years as the UK Govt. is under pressure to lift the public sector pay limits imposed in 2011-12. The regular decreases in inflation- adjusted wages in all the sectors is sure to turn the people towards online direct lenders dealing in guaranteed payday loans for bad credit.
Is The Payday Loan A Suitable Option For You?
Regardless of business sector type, if a worker experiences short of money because of any reason, the very first approach is to take payday loan. The best part of payday loan is that this financial help is quick and easy to access even if the borrower has bad credit score. The leading online direct lenders offer same day loan also with guaranteed approval. However, these loans are free of constraints of FCA regulations; therefore, the offered interest rates are too high that keep the borrower in high stress because of managing the total payment from the forthcoming pay cheque. If the required amount is more than the £1,000, you may consider personal installment loan for longer repayment period. To enjoy all the much published benefits of ‘guaranteed payday loans no credit check’, you must make sure that you are dealing with the right direct lending agency.
In general, the payday loan due date is fixed around the next pay day 10-18 days away. Late payment always invites high rate penalty that you should always avoid. You have several options to repay back the payday loan on the time without fail – debit card payment, cash payoff, auto -sweep from bank account, post-dated check. You are free to pay off the complete loan earlier but this no- cost facility is available only with few direct lenders.