Tag Archives: payday uk

CashBob Payday Loans – Don’t Let The Name Fool You

When I first came across “CashBob” I have to admit – my first thought was – “What kind of a name is CashBob?!” But, as with any payday loan firm, I decided to give them the benefit of the doubt and take a quick look at them.

On first glance I don’t mind admitting that I didn’t think much of them – the website is kind of flimsy with little information and, in a bizarre twist their opening hours are between 8am – 4pm. The majority of payday loan companies are open between 8am – 8pm (or there abouts) so that they can deal with their customer’s needs as and when they need to.

This suggests that CashBob are a predominantly digital company with little customer interaction. Whilst I personally don’t have an issue with this as I don’t necessary want to talk to a member of the customer service team it does make the company appear rather impersonal… especially to people who want that personalised service.

Having said that they are still an approved payday loan lender and they operate a responsible lending programme where they will only lend to people who they believe can repay the payday loan at the end of the month.

Like the majority of lenders they offer short term loans between £100 – £800 for the monthly term with an interest rate of £25 for every £100 borrowed. The APR is 4735%, however, as mentioned previously – this is an innacurate measurement of the amount of interest you repay as this APR is based over a 12 month period – not a single month payment.

As mentioned before – they’re very much a no-frills company but if you’re after a quick payday loan then you could do worse than using CashBob.

Sound interesting? Compare payday loans with Creditwindow to find the right one to suit your needs.

Safe Loans – Not Just A Payday Loan Company?

I stumbled across a payday loan company called Safe Loans today and was intrigued… let me tell you why.

Safe Loans work in a slightly different way to traditional payday loan companies. Rather than restricting the loan period to one month they will actually allow you to extend it to as much as 4 months.

So for people who may otherwise struggle to repay a payday loan after a month they have a little extra time to get the money together to repay it. In fact it splits the loan repayments into 4 – so you’re effectively paying what you can afford to rather than paying it all in one go.

Safe Loans have actually been around since 1989 – longer than any other short term payday lender in the market at the moment.

I was surprised by this as payday loans have only really come about in the last 10 years or so. However, short term loans have been around for far longer so I guess these guys fall into the former category – but like any finance company they have to evolve with the changing market.

Like the majority of payday loan companies they also abide by the Consumer Credit Association and are committed to treating customers fairly.

In addition to this they are very exact with their customer requirements and who they lend to. Safe Loans state that they will only lend to people who are over the age of 18, have a UK bank account (with a debit card linked to it), earn at least £800 a month, an email address and mobile phone.

So… in the most basic sense Safe Loans are a payday lender, however, they are far more flexible when it comes to their loan term.

It is important though to try and pick the shortest loan period if possible as this will keep interest rates low. The longer the period of time you borrow the loan for – the more you will have to repay.

Interested? We advise that you compare payday loans in the market before simply applying. It’s important that you find one to suit your needs.

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:

A Review Of Payday Express

Payday Express are probably one of the longest running payday loan companies in the marketplace.

The firm sees their short-term loan solution as a way of “bridging the payday gap” between when you need the money and your next payday.

They have been offering short term loan solutions since 1999, however oddly enough, unlike Wonga, PaydayUK and QuickQuid they’re not as well known. This is undoubtedly due to their relatively low-profile in the press and media.

In spite of this it doesn’t make them any less trustworthy when it comes to borrowing payday loans. They effectively offer the same thing – a payday loan amount between £80 – £800 over a monthly period.

They have a fixed interest rate of around 25%, however, like any payday loan firm they have to state their Annual Percentage Rate (APR) which is 1737%. Again – whilst this sounds like a lot the fixed interest rate is the true measurement of the amount you repay. For example, if you borrow £100 you repay £125 on the agreed repayment date.

If you are unable to meet the repayment it’s important to tell Payday Express so that you can set-up a payment plan, however, you should try to repay this as quickly as possible as interest rates can quickly creep up on you.

Payday Express is a nice quick online process – you simply enter your details and you can be approved within minutes. That’s one of the nice and convenient things about faxless payday loans – no paperwork and no waiting for approval.

Whilst the payday lender are as trustworthy as any other well-established firm it is still important to remember – don’t borrow more than you can afford to pay back.

Not convinced? Compare payday loans with Creditwindow.

QuickQuid – A Quick Review

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.

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.

Compare payday loans - find the best one to suit you and your needs.

It’s easy to think that all payday loan companies offer the same product and base their lending on the same criteria.

This is a mistake that’s not worth making – it’s important to choose carefully which is why many simply compare payday loans and what different schemes have to offer.

So why should you compare payday loan companies? Well it’s simple really – there are a number of criteria they tend to differ on, including:

Compare Interest Rates

I’m not necessarily talking about the Annual Percentage Rate (APR) – APR is an inaccurate measurement of the interest you repay on a payday loan so I’m not going into this again. The actual interest rate is a measurement over the course of a month – if we look at two lenders who use a “slider” on their websites we can actually take a look at the amount you would likely repay. Payday UK – for example, have an APR of 1737%, however, if you actually calculate it properly you won’t pay anywhere near this amount of interest.

Let’s assume you want to borrow £80 over a 30 day period. In effect you’ll repay the £100 plus interest of around £29 – which makes the repayment value £129. This makes your actual interest simply 29% – cheaper than some bank overdrafts or even affordable unsecured loans.

The same applies to Wonga – however, it actually works out at slightly more expensive with an interest rate over 30%. In spite of this it’s important to bear-in-mind that not all lenders will have interest rates as closely matched as this – some will undoubtedly charge more. But this is why it’s so important to compare payday loans before simply taking one out.

The Amount You Can Borrow

The amount of money you can borrow from a payday loan company is yet another thing to consider. You won’t be able to borrow the same amount from all payday lenders. For example, did you know that Wonga have set their first time loan limit to £400 – and they’ll only loan you the maximum if they’re sure you can repay this at the end of the month.

Let’s now quickly compare this to Payday UK who seem pretty willing to lend you full £750 first time around if you need it. However, like Wonga they will only lend you the maximum if you can repay it.

When comparing payday loans it is vital that you consider the amount you want to borrow and whether you can feasibly repay it at the end of the month. It’s also important to be completely honest when applying for a payday loan. The last thing you want is a huge debt that you’re unable to repay – that interest rate will only increase the more you leave it. This is why it’s ideal to repay the loan quickly (within a month / 30 day period).

So – take a look around and browse our range of payday loans. Most importantly – find a loan to suit you and your needs.

Image: digitalart / FreeDigitalPhotos.net

Payday Loans - When Journalists Almost Get It Right

I was reading an interesting article by Ashley Wassall – an editor for FTAdviser and specialist in retail finance.

Now this article is dated November 2011 but it’s still quite relevant even now as it touches upon the controversial subject of payday loans.

After his long-winded ramble about Field of Dreams he eventually started writing something that struck a chord with me.

In typical journalist fashion he starts off by giving payday loan companies a hard time over the size of their APR whilst purposely ignoring the fact that APR is a measurement over a year where payday loan interest is a measurement over a month (i.e. 25% as oppose to 1,125%). I’m not going to enter this debate yet again however as politicians and journalists alike seem to enjoy rubbing payday loan APR in everyone’s faces.

But I’ve digressed. What I liked about the article was his opinion that, like any other financial service (including IFAs), payday loans should be regulated. Currently, unlike most financial services, payday loans are not regulated by the Financial Services Authority (FSA) (at least when this article was written).

What is interesting though is that he calls for the principles of treating customers fairly (TCF) to be tightly applied not only to IFAs but also to payday lenders in an effort to improve the way companies treat their customers.

However, what he does leave out is the fact that many payday loan firms are members of the Consumer Finance Association (CFA) and under their terms the fair treatment of customers is absolutely essentially, as is being honest and up-front with people looking to take out a payday loan. In addition it’s worth noting that all CFA members are licenced and regulated by the Office of Fair Trading (OFT).

So is Payday lending poorly regulated? Maybe but probably no more so than any other financial product or service that is regulated by the FSA.

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.

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