Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Payday loans offer you cash and convenience when you need it most. However, these unsecured personal loans come with important terms and conditions. It’s your responsibility to read up on the pros and cons of this market to ensure that you get the best deal every time. Not every payday loan provider operates with credibility and a customer-centric focus. It’s important to pick out reliable operators with a proven track record, and the necessary FCA licensing and regulation.
These types of loans are ideal if you need cash in a hurry. You may not have time for a bank to process your credit request. You may need money to pay back an emergency vet bill, medical bill, automobile expense, or simply to tide you over until your next paycheque. In cases like this, a traditional line of credit such as a cheap personal loan from a bank may not be your best option. Besides, if your credit score isn’t too healthy you may get rejected by the bank. Payday loan providers are a lot more flexible when it comes to your credit score and issuing a line of credit.
• These financial institutions and credit providers typically quote you an APR on a per day basis.
• The personal loans provider will have access to your checking or savings account via CPAs (Continuous Payment Authorities), however UK customers have the right to request cancellations of the CPAs.
• Be advised that payday loan providers have higher interest rates than typical bank loans. It’s important to go with a reputable provider so that you don’t pay more than you should. If you borrow over 1 year, an APR of 5,000% is entirely possible but extremely expensive.
• A payday loan may not be required if you have alternative sources of income such as your parents, relatives, or friends. Consider all forms of financing before you opt for a high interest rate loan. Borrowers can access financing through credit cards, bank loans, mortgages, and the like, but if you are late on repayments, you will pay extremely high interest.
• Payday loans are designed as a short-term solution to cash flow problems. They are not an effective way to finance investments, vacations, education and the like.
With an instalment loan, you can borrow £100, £200, £300 or another amount. It’s entirely up to you how much you wish to apply for. Once you have a figure in mind, simply navigate to an FCA licensed fair loans provider and complete your online application. There is no need to visit your local bank or building society – you can simply make the application from your PC, Mac, smartphone or tablet. And with so much information right at your fingertips, there’s no excuse for not shopping around to get the best rates.
When you borrow money, it is important that you’re able to repay that money. Set a budget first, and ensure that you have the necessary funds to make good on your debt obligation. Remember, lenders will work with you to find the most affordable personal loans, but it is your responsibility to make good on them. Always check the quality of the customer service at the loans company – this is a great way to differentiate how payday loans compare to one another. Here in the UK, the Office of Fair Trading will work with you and your lender to ensure that a repayment plan can be structured according to your needs in case you find yourself in a situation where you truly find it impossible to repay your loan.