Comparing Payday Loans
Payday loans are short-term loans with high interest rates that are designed solely for the purpose of sorting financial emergencies. The borrower can borrow anywhere between £50 and £1500 and repay it during his/ her upcoming payday or in instalments within few months. These loans require very few requirements and are hence easily accessible.
Benefits of taking payday loans:
- Easy to apply: Due to the low requirements the loan application process is very simple and can be done online easily in a matter of minutes.
- Instant cash for emergencies: If you need to immediately tend to emergency financial situations, payday loans are the best bet since you’ll receive the cash within 24 hours of loan approval.
- Doesn’t require good credit score: Unlike other mainstream loans, payday loans don’t require the borrower to maintain a good credit score which is beneficial for those with poor credit.
- Short-term impact: Since the loan can be repaid in a short duration, the borrower faces only short-term financial impact.
Best way to take payday loans:
There are several online lenders offering payday loans at varying APR and interest rate. In order to strike a good deal, you need to look around, compare rates and shortlist a lender whose repayment loan plan is affordable. There are sites which compare loan offers from various lenders but there is a quicker and easier solution to apply for payday loans.
Visit PMLoans, use their online calculator to find out how much have to repay on each instalment, fill in their online application and apply for payday loans. They are the leading direct lenders in the UK offering short-term loans at fair interest rates. You don’t have to spend time comparing different lenders.
The best part of short-term loans is that if they aren’t able to meet your loan requirements, they’ll connect you with other reputable direct lenders who meet your requirements. With direct lenders there are no middle men involved, which cuts down extra fees and commission making it easy to find an affordable lender.
Difficulty in manually comparing different lenders:
You could manually apply for loans to various lenders to find which one suits your requirements. However, this also means each of the loan providers you apply to runs a credit check on you. This affects your chance of future loan approvals because a number of credit checks in your profile would make lenders apprehensive of granting loans.
Though there is an option to shortlist lenders from websites that compare loan deals, it is a time-consuming process. These sites list lenders and include information about the minimum and maximum loan amount they provide, loan term, interest and APR rate. You’ll have to carry out a thorough comparison to ensure you aren’t paying more than required.
Earlier many lenders were charging ridiculously high interest rates for payday loans and many couldn’t make timely repayments as a result which put them in financial distress. Though payday loan market is now strictly regulated by FCA, the interest rates vary largely between companies that mandate the need to find a right lender. Choose the lender with care.