Payday Loan Lenders in the UK
So-called – guaranteed payday loans – appear to be the latest phenomena in the UK, much of daytime advertising space on television is given over to this subject. Where there used to be just one firm offering this service there now appears to be a multitude of companies offering an easy way to raise money quickly – simply use their guaranteed payday loan.
But what exactly is a guaranteed payday loans?
A loan of this nature is meant to be a quick solution for a temporary cash flow problem – it is a short term loan secured against a client’s wages – it may also, but not usually, be referred to as a cash advance.
Probably the most noticeable thing about these Guaranteed Payday Loans is their APR – or Annual Percentage Rate. In the UK it is compulsory for companies to display these rates during on screen advertising and, it has to be said, the APR for a guaranteed payday loan is positively eye-watering. But it must be remembered that the rate shown will be the ANNUAL rate – and a pay day loan should only last a few weeks at most – until your next pay day in fact. It is wise to be aware that it is all too easy to fall into a never ending circle of repeat borrowing when making use of expensive, quick fix loans.
Advantages of a pay day loan
• no credit check – sadly this is something that more and more of us are having to deal with, bad credit history. Pay day loans don’t do a credit check – hence the term guaranteed payday loans.
• Speed – these loans are processed extremely quickly making them ideal for an emergency situation such as repairs etc.
• Low cost – assuming that the loan is paid back on time the cost can be fairly minor.
There are many online payday loan lenders who generally do not require a credit check, space will only allow comparison of a few of them.
• Quick Quid offer a decision online within ten minutes. They are prepared to offer up to £1,000 to new customers. A Guaranteed Payday Loans may be repaid over 1 or 2 pay periods and you will be charged between £10 – £14.75 per £50 borrowed in each pay period. This financial charge depends on how Quick Quid rate you as a borrower. For a borrower whom they rate as average the APR will be 2222.46%. Quick Quid offer total transparency and state clearly that theirs is not a long term solution.
• Wonga offer £1000 for existing customers dependent on their ‘trust rating’. Their representative APR is 4214% – but Wonga are at pains to point out that they do not charge thousands of pounds of interest and that it is impossible to borrow money from them for a year. Wonga emphasise the need for considering the full cost of repayment when looking at any loan. The example given is a loan for 30 days in the amount of £265 this would incur a fee of £98.88 making the total repayment £363.88 .
• PaydayUK offer a fixed APR of 1737% and once again offer an almost immediate service, promising your loan will be in your bank account by midnight. Borrowing £260 from PaydayUK will incur interest of £75.40 with total repayment being £335.40