Unplanned expenses creep in to our budget more often, and people who are not prepared for these kind of expenses turn towards the fast cash options like credit cards, payday loans or overdrafts to meet their expenses. The discussion is which of these options is cheaper and effective compared to others in terms of quickness and flexibility.

When to take into consideration of these fast credit options, the argument will be on the high APRs charged, unreliability over the lenders and lending companies. Starting with payday loans, considering the fact that fast payday loans are short term in nature and requires no collateral, the high APR is not of much consideration. The multi digit APR of payday loans are mostly misrepresented with that the typical fee charged is £25 per £100 borrowed. This high APR of payday loans is quite unrealistic considering that the only way to reach triple digit is to roll the loans over a 12 times an entire year.

The APR (Annual Percentage rate) is what costs a customer on his borrowing over one year. APR should include not only the interest rate, but also any annual fee. But in reality APR is a complicated formula, which can confuse the borrowers by not including any balance transfer fees on credit cards or any payment protection insurance. The tricky part of repayment in credit cards is that if you have a 0% deal on purchases and a cash withdrawal on the credit card, the lender will put the purchase debt first on your monthly payment. Overdrafts are another option of credit that is expensive than payday loans. The problem with overdrafts is that if you have to extend your overdraft, you usually have to pay an arrangement fee, that your bank could charge you if you exceed your overdraft limit without authorisation, that the bank has the right to ask for repayment of your overdraft amount at any time. The typical APRs of overdrafts are high, but might not be expensive if you the debt is cleared fast. The variable interest rate applied, makes it difficult to accurately calculate the borrowing costs.

But the hard fact is that some customers take the easy option available than to compare the price of a payday loan with the alternative over the budgeted amount and their repaying capabilities.

Also taking into the fact that there are loans called no faxing payday loans without a requirement of telecheck. The borrower can apply for a loan online and the loan application is verified realtime and after the initial verification the loan application is approved/rejected within minutes thus saving our time. The online payday lenders also provides the option of getting the amount deposited in their bank account on the same day by availing the CHAPS option with a fee. The payday loans are available for borrowers with a bad credit history, as payday loans have no credit check. Bad credit history may not be a problem as far as they have a regular paying job and are above 18.

Nowadays payday lenders are also providing flexible repayment options of installments, that allow borrowers to pay back over a period of time. Online Payday loans are so popular option for the money till payday mainly because of their unique benefits offered over other loans.

1.They can be applied for personally, through phone or on the internet.
2.You can get a loan from the privacy of your room and wouldn’t need to put up with long queues.

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