Tag Archives: payday lenders

GetMeToPayday – A Quick Review

Whilst GetMeToPayday are not a payday loan lender they are a trusted broker in the lending industry as they have access to a number of trusted payday loan companies. Consequently they are in a good position to find the best short term loan to suit your needs.

By using a payday loan broker like GetMeToPayday usually ensures that you find at least one payday lender who will be able to lend to you. However, like any loan or credit it’s extremely important to ensure that you can repay the loan on the due date.

So what are the main benefits of obtaining a payday loan through this company?

As a broker they will obtain a loan with a reputable payday lender.

They can find the most competitive rates on payday loans.

The loan decision is extremely quick and money can be in your account the same day (in some cases mere hours).

There are obvious benefits to taking out a short term loan with a broker, however, we strongly recommend comparing payday loans and their criteria before making any decision.

Payday Bank – A Loan Broker You Can Trust

Unlike the other payday loan firms on our panel Payday Bank is not a lender. They work in quite a different way.

Payday Bank is what’s known in the business as a loan broker – they try to find the best, most competitively rated payday loan to suit you and your needs.

The nice thing about going through a loan broker rather than direct through a lender is the fact that they will select a payday loan that fits your requirements. Let’s face facts – one short term loan will not necessarily suit everyone (if it did then there would probably be only one payday lender).

On average the interest rates on payday loans taken out with this broker tend to be pretty much the same – which is why the representative APR is static at around 1737%. But remember – this isn’t representative of the actual interest rate you repay as this is a measurement over a year rather than the month you take the loan out for.

This still works out that you pay around £25 for every £100 borrowed – in essence you repay a total of £125.

The majority of decent payday loan companies will only lend to you if they believe you are capable of repaying the debt. Payday Bank are probably one of the more trusted brokers in the payday business – they only work with well recognised, respected lenders in the sector.

If you choose to take out a loan with Payday Bank you are in safe hands – they are careful with who they work with and the vast majority of lenders will give you the option of deferring repayments over a period of time if you do end up struggling financially.

Compare payday loans with Creditwindow:

How Do Payday Loans Work?

If you’ve read any of the other posts on this website by now the reason you may want to consider a payday loan is probably pretty obvious, however, let’s take a quick look at why they could prove useful.

Whether you are having car problems, facing an unexpected bill or some other expense – a payday loan could potentially get you out of a fix.

I suppose the nice thing about a payday loan, as oppose to any other form of short-term loan, such as a credit card balance, is the fact that it can be made available to almost everyone – poor or good credit scores.

In fact a payday loan can be made available almost instantly (well at least within 24 hours really).

Applying For A Payday Loan

It’s really easy and quick to apply for a payday loan – far easier than a standard unsecured loan as the lenders don’t need to have quite as much information.

In the case of most payday lenders it tends to be a page of information you need to fill in. The payday loan company can then tell you within seconds whether or not you’re approved.

As long as you’ve been approved the company will simply ask you to enter your bank account details (so the loan can be paid in) and your debit card details (so you can repay the company).

The agreement then appears on the screen and you simply need to agree it – once agreed the money could be in your account the same working day. Pretty impressive if you think about it – it far outstrips the speed of an unsecured loan.

But are payday loans right for you?

It’s down to you really – if you have access to a credit card with a decent credit balance then you probably don’t need a payday loan. However, there may be instances where you may prefer to turn to a payday loan over a credit card, including:

Emergency childcare
Unexpected Bills
Paying for your MOT
Car repairs
and more…

How much money are you able to borrow?

Most payday loan firms will offer between £80 – £750 (£1,000 in some cases), however, don’t be fooled. Whilst you may be able to eventually borrow the larger amounts most payday loan firms will only lend what you can afford to repay. For example, you may be able to borrow £120 the first time around and then take out a larger amount once you’ve repaid the balance on this loan… but even then it still depends on your personal circumstances.

What if you can’t repay your payday loan?

This is something worth thinking about. Payday loans can mount up over time if you don’t pay them off quickly. However, most payday lenders will offer something known as a loan deferral. This simply means that you can defer the loan repayment for another month… however it does incur interest. This is why it’s absolutely essential to try and repay the payday loan as quickly as possible. The last thing you want is to descend into debt if you can avoid it.

Are payday loans legal? Find out for yourself...

The question over the legal nature of payday loans has been passed to-and-fro between politicians and financial regulators ever since this form of short term loan hit the UK, back in the early Millenium.

Payday loans have been called into question largely due to their large Annual Percentage Rate (APR) and the fact that most payday loan firms are willing to lend to people with poor credit, previously unheard of in the unsecured loan market.

Payday Loan APR – Why It’s Misleading To Customers

It’s important to remember that a payday loan APR is subjective – it’s essentially a short term loan that’s taken out over the course of a month. This means that the APR (which is measured over a 12 month period) is actually misleading to customers.

Payday loan regulations state that an APR needs to be clearly displayed on the company’s website. The only real problem with this is down to the fact that a customer will usually repay the loan by the end of the month… so the interest accumulated will be a fraction of what the actual APR is.

For example, you will end up repaying £125 back – this is only at interest rate of 25%. This is a minor amount compared to what you would repay on a yearly loan. In fact it’s equivalent to a standard unsecured loan with a 25% APR.

Payday Loans – For People With Poor Credit

Payday loan companies can and do lend to people with a poor credit history. Let’s face it – many people go through a tough time and it’s not always their fault. They may have lost their job or had unforseen expenses they may not have been able to meet. Payday lenders don’t believe these people should be discriminated against because of a mistake or an unfortunate circumstance.

This is why payday loan firms will lend to customers with poor credit scores. They will accept a customer’s word that they will repay the loan at the end of the month and will make concessions if the customer struggles to repay it in one go. This is usually referred to as a deferral – where the payday loan repayments are split down into monthly manageable repayments.

Payday lenders are not demons – they’re not there to charge you bucket loads of interest at the end of the month. Essentially, as long as you’re honest and up-front with them, payday loan firms can be very understanding – or at least as understanding as a lender can be.

Banks and building societies are offering even more competitive interest rates on loans and current accounts.

Good value personal loans with low interest repayment rates are being made more and more available as banks and building societies look to compete with payday loan companies and other short-term lenders.

Good news for consumers, Nationwide Building Society have announced a cut of 0.2% for both new customers and for new personal loans paid-out to existing customers.

According to Nationwide, customers who take out the Nationwide FlexAccount with a view to using it as their main bank account will benefit from a massively competitive interest rate of 7% APR Typical. The new rate is applicable to personal loans of up to 5 years, between £7,500 – £14,999, and can be taken out over the phone, through the branch network or online.

Further good news has revealed that even people who do not have or plan to open a Nationwide FlexAccount are able to take advantage of their personal loan schemes with a competitive rate of 7.1% APR Typical.

The Nationwide’s head of banking, Richard Napier, commented:

“If you’re looking for a personal loan to help buy that new car, pay for a wedding, carry out home improvements or consolidate other debts, Nationwide’s new rate is definitely one to consider.”

This move by Nationwide suggests that British high-street banks and building societies are taking the needs of their customers more seriously and are looking to compete more aggressively with excellent value products emerging on to the market.

With these improvements to the way in which we bank could we soon be looking at another booming economic period… let’s hope so.

If you’re interested get a Nationwide FlexAccount today:

Government Calls for Simplified Financial Products

Banks, Payday loan companies and credit card providers are being faced with standardisation after a Government publication on simplifying financial services.

The Government has recently stated that high-street banks and consumer groups should look at developing a range of simple finance products to help consumers make the most out of their finances.

A recent publication by the Finance Secretary to the Treasury, Mark Hoban MP, sets out a number of proposals for financial products that will help promote personal responsiblity amongst consumers. It will also enable people to compare products and understand their features more clearly. It’s thought that this will encourage competition amongst banks, payday loan companies, and credit card providers.

Mr Hoban commented:

“The Government is committed to helping consumers take responsibility for their finances. In order to do this they need to be able to make sense of the huge range of financial products in the market. Simple financial products will help them to do that, by providing a safe choice and a common benchmark against which other products can be compared.

“This is one of a series of reforms to ensure that consumers get a better deal from financial services.”

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