If you are considering applying for a payday loan in the UK then there is some information you should know first. Below is a list of common misconceptions and frequently asked questions regarding payday loans. Each will help you reach an informed decision about if a payday loan is indeed right for you.
Is The Repayment Period For All Payday Loans 1 Month Only?
No, lots of people apply for a payday loan to acquire some quick cash before their next payday. Perhaps they need some urgent home or car repairs and waiting several more days or weeks for their next scheduled salary payment isn’t an option. In cases like this, the customer may agree to simply pay the full amount back once they get paid. This is where this belief comes from.
However, things are changing. Due to the growing demand for payday loans in the UK, more and more payday loan lenders are now providing clients with more flexible repayment options for their loans. It is now possible to secure payday loans with a repayment period of anywhere between 1 – 6 months. Of course, this depends on the lender, but this added flexibility has encouraged more people to investigate the possibility of a payday loan instead of traditional borrowing options such as a credit card or an overdraft.
At BadCreditScore.co.uk, thanks to our unique software, we endeavour to help our customers locate the most suitable payday loan for them and the cheapest. This is based on interest rates, repayment plan and the probability of approval. We scour the numerous FCA approved payday loan lenders on our panel, to give our customers the best options available and save them time. Our aim to help as many people as we can get approved payday loan in the shortest time possible.
However, it’s important to point out that we are unable to find a payday loan for everyone. Sometimes we’ll be unable to match you with a lender. When this happens though; the customer who has been rejected will now know not to apply directly through a lender. Doing so may risk damage to their credit file while applying through us is safe, not to mention free.
What Happens If I Can’t Repay My Payday Loan?
For one reason or another, you may find yourself unable to repay your payday loan in due time. We recommend that you immediately inform your payday loan lender as soon as you realise that you are unable to make the repayment in the stipulated time. This will allow both of you to work towards a solution that may include developing a more flexible repayment plan and prevent you from accruing unnecessary charges.
Do All Payday Loan Lenders Charge High Interest?
Payday loans can charge higher rates of interest that traditional borrowing. The interest rates of payday loans are typically presented as Annual Percentage Rates (APR). However, this is not the actual interest you will be expected to pay, seeing as you are not taking the loan for an entire year. Therefore, it is crucial to remember that the APR presented on a payday loan offer is not a representation of precisely what you will pay.
With our simple online calculator at NowLoan, you can find out exactly how much interest you will be charged on your payday loan. Also, you can request a free, no-obligation quote to understand exactly what various payday loan lenders are offering on your payday loan request. In order to apply, you’ll need to be a full-time UK resident above the age of 18. You’ll also need to prove you have a regular source of income.