Tag Archives: pay day loans

Protection For Consumers Under New Payday Loan Bill

In a new turn of events the British Government are introducing new laws to allow restrictions to be enforced on payday loan interest rates.

The Government is to make amendments to the Financial Services Bill to give the new Financial Conduct Authority (FCA – the replacement for the FSA) new powers to limit the high charges imposed by payday loan firms.

Essentially the FCA will have the power to investigate individual loan schemes and actually impose a cap on the amount of APR charged. However, it will be interesting to see how much affect this actually has – especially since an APR is an inaccurate measurement for a payday loan, given that it should be paid off by the next pay-date – i.e. by the following month. APRs are measured over a 12+ month period.

But the move does make sense – when a customer see’s an APR as big as 4000% it does cause alarm bells… but maybe this is why APR shouldn’t be used by short term lenders as a means of measure. A better representative measure would be an average interest rate over the loan period – i.e. one month.

Commenting on the new bill, Lord Sassoon said:

“We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure that the loan cannot be rolled over indefinitely should it decide, having considered the evidence, that this is the right solution.”

If this move makes payday lending fairer and more ethical, I for one am all for it.

QuickQuid – A Quick Review

Apply up to £1,000 @ www.quickquid.co.uk

In much the same way as PaydayUK, QuickQuid has been around for a number of years and in this case is actually a globally established lender, operating worldwide, making them one of the most trusted payday loan firms in the UK.

QuickQuid originally started out as CashNetUSA – a US based payday loan firm back in 2004 and QuickQuid was launch shortly after in 2007.

In much the same way as PaydayUK and Wonga.com they are dedicated to responsible lending practices to ensure that they only lend to people they believe can repay the loan. This is another reason why the likes of QuickQuid are so stringent in their criteria of who they lend to.

QuickQuid will only lend to people who are employed, aged over 18, live in the UK and have a valid UK bank account.

However, like most compliant payday lenders they also state that they will only lend an amount they’re sure the borrower can repay at the end of the month. In spite of this, if the borrower is unable to repay it at month-end, they do have the option of deferring payday loan repayments so that they can repay it in manageable chunks over a few months.

It is worth bearing in mind though that, like any other loan, the sooner you repay the short term loan the less interest you will have to pay. So repaying the payday loan quickly is in your best interests.

So the question remains – should you borrow from QuickQuid? The simple answer is – it’s up to you but bear in mind that these guys have been around for as long as PaydayUK and longer than Wonga.com. They follow similar compliance processes.

Still unsure? Compare payday loans with Creditwindow.

When Can A Payday Loan Be Useful?

When Can A Payday Loan Be Useful?

Find out when a payday loan can be useful. Compare payday loans with Creditwindow.

Admittedly payday loans are not most people’s answer to short-term borrowing as an authorised bank overdraft or credit card tends to be the preferred short term loan of choice.

Unfortunately not everyone has access to credit cards or authorised bank overdrafts – usually because their credit score isn’t in great shape or they simply have no credit history to speak of.

Fortunately payday loans can help in these cases… as long as you have a permanent job, earn over £750 per month, have a bank account and are aged over 18.

Payday loans can be useful in many circumstances as they are a very quick source of short-term lending. Did you know that you can get money into your account within a few hours? Well with a payday loan you can, unlike other forms of unsecured loans.

But when is the right time to take out a payday loan?

That is a bit like asking “when will I need my credit card” or “when will I need my bank overdraft?”

Think about it for a minute – when would having a credit card or bank overdraft be useful? When you have a plumbing disaster to take care of or maybe your car has broken down and it’s in need of urgent repairs… whatever the emergency or unexpected cost a payday loan could help to bridge the gap until payday.

So do you need to bridge the payday gap for an unexpected bill? If so then a payday loan could be what you’re looking for.

Compare payday loans with Creditwindow and find the right one to suit you.

Payday UK – A Quick Review

PaydayUK - a quick review

Payday UK is basically a “brand” or “trading name” of MEM Consumer Finance Ltd, a payday loan company that’s been offering short term loans of £80 – £750 over the course of a month since 2003.

Payday UK is one of the longest established payday loan firm in Great Britain and probably one of the most trusted in the market.

The firm tend to be very up-front and honest about their fees, charges and what they look for in a customer.

Payday loans offered through this company are for people who need to bridge the gap until payday – whether the loan is to help meet an unexpected bill or some emergency expense.

Let’s take a quick look at the average PaydayUK customer – i.e. what they look before agreeing to lend you money:

1. You need to be over the age of 18
2. You must be in permanent employment
3. You must earn a minimum of £750 per month
4. You must have a bank account with a valid debit card
5. You are paid monthly

Other than this it should be pointed out that PaydayUK will not target people with existing debt problems and they only lend to people they believe can repay the loan.

If you’re looking for a payday loan you could do worse than looking to the likes of Payday UK.

Don’t Let Your Payday Loan Debt Grow

British consumers turning to payday loan companies for a quick finance fix are being warned to repay the money on time or risk facing high interest repayments.

According to insolvency professional trade body, R3, over 2 million people have turned to payday lenders such as Payday UK and Wonga over the past year. Many customers are drawn to the convenience of borrowing relatively small amounts (between £80 – £1,000) and, in some instances, the payday loan can be in the customer’s bank account within 24 hours.

Whilst borrowing a payday loan can prove cheaper than accessing an unauthorised bank overdraft the interest can accumulate quickly if the money isn’t repaid on time.

For example, Wonga have suggested that a standard payday loan of £100 could result in a repayment value of £187 if no repayments were made for 2 months or more. If the customer continues to default the debt is usually handed to a debt collection agency who will add on admin fees as well – driving up repayment costs further still.

One finance expert commented:

“There is a real danger that customers could fall into a spiral of debt where they have to take out a loan each month just to make ends meets. The golden rule is not to borrow money unless it is absolutely necessary.”

Payday Loans – A Short Term Solution?

More and more UK borrowers are being turned down for credit right now. However, that doesn’t hide the fact that we all need a little financial help now and again, especially as we emerge from one of the worst recessions in history. So, when you need extra money to pay for unforeseen expenses there is certainly no harm in considering a payday loan as a viable option.

The vast majority of people are usually accepted for payday loans without a glitch and you don’t need a great credit score. The only real lending criteria you need to meet to get a payday loan is a full-time job with a moderate salary, to be a permanent UK resident, and to be over 18.

But what kind of things should you consider taking out a payday loan for? Well they can be used for practically anything – from funding a short break to seeing you through until the end of the month when funds are tight. But here’s a list to give you some “food for thought”:

  • Petrol costs
  • Utility Bills
  • Groceries
  • To assist with mortgage repayments
  • and more…

To find out more about payday loans please visit Payday Loans – More Information.

Top Benefits of Payday Loans

In our shakey economy it can prove pretty difficult to make ends meet and those unexpected bills and expenses that crop-up every now and again sometimes leaves many of us short of cash. There are a range of different financial products available on the market to help you out, including the most obvious forms, such as credit cards and bank overdrafts. Unfortunately it can prove difficult for people with a poor credit score to obtain this type of credit.

Fortunately there are a number of other products available to people with poor credit, including logbook loans and payday loans. Unfortunately payday loans get an undeserved bad rap in many instances. So we’re going to take a quick look at these type of finance to identify what the benefits to them are.

1. Payday loans applications can be approved within minutes and the money can be transferred quickly into the borrower’s bank account, occasionally even on the same day.

2. Should you keep borrowing from the same lender are able to borrow higher value loans, as long as they have a proven track-record of paying off previously borrowed payday loans.

3. Should you experience problems in paying off the loan on time you can defer payments over a period of time.

4. The majority of payday lenders do not discriminate (or even credit check) many borrowers with a bad credit score, especially if they have a proven record of paying off previous payday loans on time.

5. The apparently high APR on payday loans isn’t entirely accurate. The APR (or annual percentage rate) is calculated over a yearly period, however, since a payday loan is only a short-term, monthly option, this doesn’t really apply. Usually it works out that you pay around £20 – £25 on top of the borrowed amount at the end of the month. For example, if you take out a loan for £100 then you only pay back £120.

Bridging the gap until payday

If it’s proving to be a tough month financially there are a number of solutions you can look into to help you out. Being faced with unexpected bills and other unforseen expenses can be daunting for anyone living on a tight budget, especially if you’re low on credit.

There are of course short-term borrowing solutions available to you, including credit cards and bank overdrafts. Unfortunately not everyone has this luxury available to them. If this is the case payday loans may just be the solution you’re looking for.

A same-day payday loan usually lasts up to 31 days and are essentially cash advances on your expected salary at the end or the begining of the month.

Payday loans generally range between £100 – £1,000 and can be used for a variety of reasons, other than simply bridging the gap until your next pay cheque, as long as you can pay them back once your expected salary arrives. In many instances you can spread the repayments (usually called deferrals) should you struggle to pay them off.

Paying off a payday loan in one go can prove to be a far cheaper alternative than paying off an accumulating credit card debt and is certainly worth considering if you have the ability to pay it off in one go.

The interest rates on payday loans can look unusually high is because they are measured on the same APR scale as year long loans. However, payday loans only last a month so, in reality, you will only end up paying around £15 – £25 interest on top of whatever you borrow.

Payday Loans – how can they help me?

With the economy in the weakened state it’s in and the Government taxing us to the hilt it can prove difficult to make ends meet.

Taking out a payday loan could prove to be the solution to many of us are looking for. Due to the very nature of a payday loan you could have cash in your account within 24 hours and the application process is usually pretty quick and painless. You can apply online night or day for quick payday loans.

These types of loans last for around 30 days (an average month) and are essentially cash advances on your expected salary.

In many instances payday loans are available between £80 – £1,000, however, it’s worth remembering that you can only borrow as much as you can afford to pay back.

Unlike a standard personal loan, payday loans are solutions for short-term borrowing, aimed at people faced with an immediate financial difficulty. Fortunately short-term borrowing on a payday loan has no effect on the status of your credit rating and it is not required to discuss the details of your situation with a financial organisation such as a bank or loan company.