As a matter of fact, payday loans are marketed as an easily available loan that can be applied online. Approval of such loans are also pretty easy and the required sum of money will also arrive within 24 hours’ time.

On the surface of it, payday loans look very attractive and easily available Online cash loans that you can get within 24 hours’ time. On the contrary, if you get in touch with Loan Pig, which is one of the well-known lenders in the UK, can arrange for short term loans at much attractive terms as compared to payday loan.

One underlining thing that often people miss is that payday loan attracts % APR at yearly rate while they are offering the loan for one-month repayment period. On the top of that many lenders will also charge additional processing fees, which make this payday loan a very expensive loan for you.

How payday loans really work?

Although you may think that payday loans are very easy to get but the total process is actually not as simple like sending a SMS message. Almost like any other loans, here too you will have to pass through complete application processing. This may also include your credit checks and assessments of affordability, as per FCA regulations.

So, if you might be looking for a loan without any credit checks but then these loans are most likely to be a scam. There are few loans available with bad credit too, but your real circumstances will always be thoroughly checked and after that only a lender will offer you loan.

No reputable or responsible lenders can provide any kind of loan just based on few details about you through your text messages. There are few downsides of these payday loans that you must understand, which are as follows:

• Usually, while applying for payday loan few questions will be asked either through text messages or phone call.

• There will be no online loan calculators available or provided by the lenders, so that you can properly calculate how much you have to really repay.

• The terms and condition for the loans are often not discussed, but it gets set automatically.

• Most lenders pay you loan for next 30 days repayment terms however the % APR is usually calculated based on yearly basis.

• There is very little flexibility available with this kind of loan.

• Lender will ask your contact number and few details about your financial information. If the details supplied by you vary from the actual record then your loan application will not be approved.

• In case, you have provided with new contact number, which is not linked with your bank account then lender will not recognize your application.

• In case, you bank details have changed then you have to update all that online immediately and in case you miss it then your money may also go to wrong account.

• Few lenders may let you contact by phone and allow you to change few details before sending your loan application. Few other lenders may consider any information change as full reset.