I am in the throes of denial.  No, I am not denying rumours or gossip – I am not a Hollywood celebrity.  What I am talking about is denial in terms of finances.  Just about two weeks ago, I decided to apply for another credit card from one of the biggest credit card companies in the UK.  My rationale was to stop using my existing card until I pay off a hefty amount of the balance.  However, I need another credit card in case I find the need for one.  I was not even looking for a high credit limit.  Just one that I could use for small purchases.  Yesterday, when I followed up on my application, I heard that dreaded word: declined.  Declined, denied, disapproved – you can put it any way you want, it still irks the heck out of me.  I know I do not have a perfect credit rating but I am pretty sure that I am doing all right.  In any case, the representative smugly informed me that I could apply again in 3 months but would not disclose the reason for the denial.  Whatever!

So, instead of applying for another credit card – I really do not wish to hear that “d” word yet again, I think that I shall look at other options instead.  Indeed, perhaps handy cash would be better anyway.  That is why I am going the route of the “no denial risk” loan – the payday loan.

There are countless sources of payday loans in the UK today.  Better yet, most of these payday loan providers operate online, making it easy and convenient for anyone to apply for any of their products.  A payday loan is a short term loan which allows a person to borrow money for a relatively short period of time, with minimal requirements.

How does one qualify for a payday loan?  There are generally 4 requirements that all payday loan lenders ask from their customers.  These are as follows.

One, you have to be a resident or a citizen of the United Kingdom.

Two, you have to be at least 18 years old.

Three, you have to have a current bank account.  This is necessary due to the fact that payday loan lenders operate online and carry out their transactions electronically.  The money that they will be giving to you will thus be transferred via electronic means straight to your bank account.

Four, you have to have a regular source of income.  This is the crux of the matter, really.  While credit card companies take a look at your credit history before approving an application, payday loan lenders merely take a look at the money that comes in on a regular basis.  If you have a job or you run your own business, you just have to show the payday loan lender the amount that you have coming in regularly and they will approve your application for a payday loan.  Practically everyone is approved for a payday loan, hence the “no denial risk” tag.

Bad credit has always been a problem for many Britons. The fact that the banking sector has been so tough on those with not-so-perfect credit has not helped the situation one bit.  With the problems that the worldwide economy has been experiencing, this attitude is quite understandable.  However, from our point of view – the borrowers’ point of view – the situation being understandable does not help us any.

Fortunately for us, there are other options when it comes to dealing with bad credit.  Of course, the most obvious one is to try and build credit back up.  This option, while it is sensible takes a lot of time – a luxury that many of us do not have.  A more feasible option, while we take the time to build up our credit is to get a payday loan.

A payday loan is a short term loan that has been created so as to provide for the immediate needs of anyone – and this includes those with bad credit.  The main thing about a payday loan that makes it ideal for those with bad credit is the fact that payday loan lenders do not require a credit check.  This means that even if you have the worst credit record in all of Britain – in the whole world, even – you will be able to apply for a payday loan without worrying about your credit history.

Naturally, even if payday loan lenders do not ask for a credit check, there is something that they still require.  After all, they are in this as a business – they will not merely give money away just like that.  What replaces a credit check is a simple requirement – proof that the borrower has a regular source of income.  That is, you simply have to show proof that you receive your wages on a regular basis.  This should be enough for the payday loan lender to determine whether or not you will have enough resources to pay back the money that they will lend you.

There are also other minor requirements that a payday loan lender will ask of you.  Here are these other requirements:

1.    You have to be at least 18 years old.
2.    You have to be a citizen or a resident of the United Kingdom.
3.    You have to have a current bank account.

The first two are pretty much standard in all official transactions.  The third one is necessary because payday loan lenders operate online.  From the application process to the release, transactions are done electronically.  This means that everything will be much faster than is usual.  Part of this process is the depositing of the money into the bank account of your choice.  This is actually one of the things that make payday loans all the more convenient.  Instead of having to go out and pick up your money somewhere, you can simply access it online through your bank account.

Now isn’t this the best solution for those with bad credit?

The idea for this post came to me while I was chatting over an instant messaging platform with an acquaintance.  He was talking about how hard his life has become and how he really needs an extra source of income.  In the meantime, he was thinking of getting a payday loan.  I told him that that was a good idea and asked what was holding him back.  To that, he replied that he was unsure as to the reliability of payday loan lenders.  In his mind, they are not as responsible as the conventional lenders that he has been using for most of his life.

This got me thinking – a lot of people who have not had the chance to deal with payday loan lenders might have the same misconception: that payday loan lenders are not responsible lenders.  Now I understand why this misconception may arise.  After all, payday loans have been the target of so much negative publicity.  The problem is that not everyone looks beyond what the media portrays.  And my acquaintance is one of those people.  At the end of the day, these people, if they do not step out of their comfort zones and seek the truth, will be at the losing side.

The question remains though, are payday loan lenders really responsible lenders?  The answer is a simple YES.

Payday loan lenders are in this for the business.  And all businesses are regulated by the government.  If they are merely predatory and will not be giving any benefit to their customers, then do you think that they will be allowed to continue their operations?  I doubt it.

This is not to say that there are some unscrupulous entities out there posing as legitimate payday loan lenders.  These are the groups that give payday loans a bad name.  These are the groups that you have to be wary of and that you have to stay clear of.

So how do you determine whether or not a payday loan lender is reliable and responsible?  There are many ways by which you can do this.  One of the first things that you have to do is to check their web site.   Most of them operate online and your initial screening, so to speak, will involve their site.  Obviously, if a site just looks hastily put together and spammy, stay clear.  However, it is very easy to put together a web site these days and if you base your decision merely on the “looks” you might end up being deceived.

That is why you have to take a look at other things such as their customer service.  Check to see if they have contact details such as e-mail and phone number.  If I were you, I would send them an e-mail and see how they respond to your query.  Better yet, give them a call and see if the number can be reached.  You could also check if they have an endorsement from a government agency.  Last, but not the least, ask around if anyone has heard of that particular payday loan lender.

We all make mistakes – it’s part of being human.  More often than not, however, I think that mistakes occur when we are in a rush.  When we do not slow down a bit to contemplate over matters and just do things without analysing other possible options, we tend to make more mistakes.

That is why, when it comes to getting a payday loan, I highly suggest NOT rushing into things.  Although you might be in a hurry to get the money due to one need or another, it is still good to be prudent and, at the very least, compare the available offers.  Though it does denote slowing down, it should not really take up much of your time.

What I am actually talking about is looking at several payday loan lenders and their offers before you make a decision.  Some people call it comparing payday loans while others call it canvassing.  Whatever you call it, the idea is the same.

First, you go online and choose a certain number of payday loan lenders that you think will be able to help you.  You can either do a search on any of the search engines that you normally use or you can ask for referrals from other people whom you trust.  What I like to do is to have anywhere from 5 to 10 payday loan lenders on my list.  Of course, if you are in that much of a hurry, you can lessen the number that you want to look at.

Once you have this list, you should try to further shorten it.  I like narrowing down my choices to about 3 payday loan lenders.  And how do I narrow them down?  I take a look at their web sites and compare them using several points.  One, I like to see how their web site is designed.  If the site looks spammy right at the outset, I cross it off my list.  If the site looks ok, I take a deeper look.  Two, I look at the rates that they charge.  Normally, payday loan lenders charge a fixed amount for every certain amount that you borrow.  They also normally show this on their web page.  So if, for example, I see several that offer £10 to £20 per £100 borrowed, I keep them on my list.  I tend to shy away from the ones that charge more.  Three, I look at their customer service options.  I prefer payday loan lenders that have a hotline number.  This way, I can call them for specific questions later on.  And if they do not answer the phone, I cross them out of my list again.

Once you have narrowed them down to 2 or 3, that is when you can actually call them.  It is best to have your questions listed down so that you will not waste your time or theirs.  This way, you will also avoid forgetting important questions that can help you decide on which payday loan lender to use.