Tag Archives: interest rate
Payday Loans in the UK are Convenient
Payday loans are a vital source of credit for many low income earners and others in the UK who dont qualify for loans or who have poor credit. A payday loan is a quick convenient form of borrowing that meets the real needs of UK consumers.
That has traditionally meant that most Brits would have to turn to family for emergency funds. In modern times however, people dont like turning to family for short term loans and many dont have family local. We all encourage others to be independent and to be conservative with money and live within ones means.
In reality, our monthly bills can come unexpectedly. Bills for car repairs, medical treatments, clothing, or home repairs cant be put off even though we have no money. Because of the global recession banks are even less reluctant to fulfill the short loan requirements of UK consumers and workers. The banks however dont necessarily want to let competitive financial services provider enter the lending business.
New payday loan lenders have arrived on the scene to fill this loan market void. Detractors of payday loan lending cite high interest rates as a big problem. Each payday lender has their own set interest rate and borrowers are advised to look for the best loan interest rate they can get along with lower transaction fee costs. Payday loan lending rates vary from 738% to 2200% on a yearly basis if they debt is carried forward each month. If the loan is taken for short terms, the actual cost is fairly reasonable.
The payday loan application process is straight forward. This is an area where borrowers should pay attention to as well. Some UK payday loan companies are open to make applicant a customer but this isnt wise. Many people who apply for payday loans have been turned down many times before because they dont qualify. Someone who is about to move or lose their job often a bad candidate for a loan. A responsible and ethical payday loan company will only take the best available candidates. A company that caters to these trouble account often end up having aggressive interest rates and collection practices that give the industry a bad reputation. They are the problem.
If you apply for a payday loan, be aware of the companys credibility and how they conduct themselves. If they treat you with disrespect and dont conduct due diligence on your acceptability as a borrower then you can expect they will be inundated with bad borrowers. Some has to pay for all those delinquent loans and their customer service too will be geared toward dealing with soon to default borrowers. A payday lending company that takes a few days to accept you and asks you to fill out and send in forms is obviously a better bet. That short extra time means youll be in good company and youll get the best payday loan rates possible.
If you have to fill out forms to complete a payday loan account and are required to wait a day or two, do it. Do business with a payday loan company you can trust.
Applying for a Secured Loan 101
If youve made the decision to apply for a secured loan, youre likely to have done a bit of homework in regards of current interest rates, traditional fees for preparing the necessary documents, and of course, the fee your lender will charge you for your secured loan. If you have yet to accomplish the above tasks, you should at least begin the process before you begin to contact potential secured lenders. So heres a bit of basic info for you (and if youre already familiar with it, lets just consider it a refresher course, shall we?).
The most common type of secured loan is a mortgage; one of the largest bills that you will ever have in your life. There are a wide variety of fees in all shapes, sizes and colors for you to decipher through, so be sure to pack your x-ray goggles!
First things first, we have the APR its the amount that you will be paying each year for your loan. Also known as the Annual Percentage Rate, it will include the interest rate, fees, and certain other charges calculated on a yearly basis to come up with one complete percentage. Its usually a bit higher than the interest rate that youre quoted, as it includes the other fees.
Be sure that you know the terms for fees as many of them can be hidden or covered up as something else. Points are one of the more popular fees, and can range in purpose to get you a lower interest rate to an honest loan officer telling you thats how hell fill his paypacket. When in doubt, ask questions! If youre not happy with the answers you received, ask someone else. Ask all the way up to the president of the company, as this is your money were talking about here. And dont sign anything that youre not 100% sure about.
And last but not least, be sure to shop around- dont put all of your eggs into one proverbial basket, so to speak. There are, unfortunately quite a few bad loan originators (often referred to in the industry as predators) in the secured loan industry that are completing the old Bait and Switch routine on you- promising the moon and stars to you, their special client, but all the while they have no such program waiting for you (and you are now in a difficult position: either choose the horrid loan program that you got switched into, or no loan at all). By shopping around, and informing the competing lenders that they are not alone, you are setting yourself up for an ideal, winning secured loan situation.
When the application process commences, its very important to remember that you can change your mind at any time without penalty or fine. Sometimes our gut instinct tells us something that we just cant avoid, and its often best to listen to our gut