Representative APR 1272% (Variable)
Representative Example: Borrow £250 for 90 days. Total amount repayable is £411.63. Fixed interest rate of 292% per year.
Ideally loan approvals and disbursement is authority of direct lenders only. But in UK payday market many FCA authorized brokers are also working. Brokers are agents of direct lenders and get commission for every loan lead. Brokers are working as marketing team for lenders and they sale their loan lead to highest bidder lender.
Now this can be easily understandable, if lender buy lead on high cost then who will pay the cost?, yes borrower. This is the reason every loan seeker wanted to apply with direct lender only, to eliminate broker the middle man.
One more advantage in funding with direct lenders, that is of fast loan processing. Because when you apply with broker he will take time to sale your lead and try to make more profit by it. When you are in urgent need of money then you should search direct lending source only.
You should read and understand carefully if any website offer’s you “Guaranteed Payday Loans”. Brokers and other loan middle man in payday market propagating false promises to attract loan seekers. Payday loans are unsecured loans and as per FCA responsible lending principle, all UK direct lenders are performing credit checks before loan approvals. Then how any one on the behalf of lender can guarantee for loan acceptance? We at Payday loan site offer you for 100% online guaranteed loan search with our associated lenders whose loan acceptance rate is comparatively high, but our lenders cannot guarantee for 100 percent approval of your loan.
In lending business if lender will see even a little chance of his profit he will not reject the loan application. The big question is, if borrower will be able to repay the loan in due course of time? This can be answered by financial analysis of the loan applicant. This process is called loan underwriting and includes factors like, monthly income and savings, present assets and liabilities, past few month’s financial transactions in bank statement and past credit history. If applicant can provide evidence that he is capable of loan repayment then loan acceptance chances are nearly 100% and vice-versa if he fails in loan affordability test no lender can fund him.
Payday loans are not cheap because they are unsecured loans and no guarantor is required so lender charge high interest rates in compression to other long term secured cheap loans. So you should not misled by good looking phrases like “Cheap Payday Loans”. Go for payday loans if you require urgent money for very short duration and you are sure enough about timely repayment.
As above we have described that “no credit check loans” are not valid in UK but “Payday loans for bad credit” is still possible. Bad credit score of a person tells about his past financial transactions and for short term loans the present financial condition and loan affordability has greater importance in loan approvals. Yes, lender may charge higher interest rates to compensate their additional risk involved in bad credit loans.
Although lenders in UK are performing credit check on every loan application but the first check the loan repay capacity of the borrower. If the borrower’s present condition is not good enough to repay loan then despite of good credit score his loan acceptance chances are dim. If borrower can prove that he is in position to repay loan easily on due date then loan approval chances are high even his credit ratings is bad or poor.
Representative Example: Borrow £250 for 90 days. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Fixed interest rate of 292% per year. 1272% APR Representative.
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