The overriding rating metric is "success rate" -- which vendor gives the users the highest probability of getting a loan. Beyond that, we take into account loan costs, site usability, support and ease of funding. The loan chart may change on a weekly basis as various lenders change their internal processes thus effecting success rates for borrowers. The top 3 lenders listed have the highest success rate of providing a loan to our readers.
StarReviews Payday Loan Notes
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Individual Payday Loan websites change loan costs, APR and loan requirements. Please check with the individual website for the most current information.
Your Guide to UK Payday Loans
When times are tough and budgets are tight, how do you make ends meet? Borrowing money is not a new concept. When people are tight on funds they may apply to their bank for a loan or a line of credit. When you are late on your bills you can ask your creditors to extend the deadline.
The rise of the payday loan is a new phenomenon. These are loans that many people who have been turned down by a banking institution will apply for. Instead of going through friends or family, a payday loan is a legal way to get quick cash in a pinch.
What Are UK Payday Loans?
UK payday loans are small, high interest loans that are available to those in need. If you have had an unexpected medical emergency or a problem with your transportation then you may want to look into this loan. According to The Guardian more and more people are taking out these short term loans to help them make the payments on their home.
These loans are relatively easy to acquire. Most times when you apply for a payday loan you can get approval the same day. The drawback is that there is a high annual percentage rate attached to them. If you are in dire need of a loan and cannot find anyone else to turn to, then you might turn here.
How Do UK Payday Loans Work?
A borrower will seek out a payday lender through an internet search or through a visit to a payday shop. The borrower asks to borrow a specified amount of money that will tide them over until they receive their next wage payment. In return for the loan the borrower will give a payday loan company a postdated cheque that will cover the loan and the fees. When the date comes to pass, the payday loan officer will cash the cheque and the loan will be over.
Where Can I Get Access to a Payday Loan?
There are about 2,000 reported High Street payday loan shops. These shops are thought to have better rates than the more than 100 online shops. When you are looking for a loan you should be sure to shop around and find the best rate for the money that you need.
Are UK Payday Loans Regulated?
Any shop that wishes to issue a payday loan in the UK needs to have a consumer credit license from the Office of Fair Trading. The high interest of these loans has left some critics to call for stronger regulation. The issue is not with the original loan as much as it is with the fees that happen with the roll over loans. When you cannot pay the payday loan back on the time of the cheque that you issued to the payday lender there are roll over fees and the interest rate jumps. Interest rates can go as high as 4,000% or more.
What Makes a Good Payday Loan Work?
When you are shopping around for a payday loan you want to be aware of the representative APR. If you were to borrow one hundred pounds over the term of 30 days and the representative APR was 3,378% you would owe one hundred and thirty pounds. In order to keep this as a good payday loan you have to pay back the loan on the agreed upon schedule.
You want to be careful with your budgeting for the payday loan. You cannot simply ask for the amount that you will receive from your next wage cheque as this will not cover the fees. You should ask for only what you need and you should plan to pay it off right away. If you are smart with this type of loan then you can use it to your benefit to help you get out of a tight situation.
How Much Money May I Borrow With a Payday Loan?
The amount of money that you may borrow from a UK payday loan provider will vary by the provider. However, the common range of available funds is about one thousand pounds maximum over thirty days. Some lenders extend the days that the loan can be open.
Why Would I Need a UK Payday Loan?
If you are in a tight spot, with no alternatives, then you may benefit from a UK payday loan. You want to be sure that you can handle the APR and that you are working with a secure company. Especially when you are sending banking information over the web, you want to know the site you are working with is protected. A payday loan can be the right choice for you if you need fast cash and can pay back the loan right away.