Get Familiar With Payday Loans Comparison Features
Borrowers need to compare short-term loan quotes to make an informed and correct decision. Payday loans are short-term and come with a high cost, so it needs to be done responsibly. You need to be confident that you can fulfill the loan repayment obligations.
You need to do a comprehensive payday loan comparison because credit cost affordability varies from one lender to another. Ignoring to compare will end you up paying more than necessary. You can even invite financial issues later on.
LoanPig is an online direct lender that offers fast payday loans for £200 for a minimum of 2 months up to one year at 1261% APR. The application process is quick and simple. The application approval is completed ASAP and funds are deposited on the same day.
Many people opt for installment loans over payday loans because repayments are smaller and more manageable. Payday loans carry high interest but are a good borrowing method, especially for people with poor credit history. It is recommended that if you can wait to resolve the financial crunch till the next payday then there is no need to apply.
Payday loan features to compare
Annual Percentage Rate
APR figures look petrifying because it is more than 1000%. APR is a misleading feature because you are borrowing cash for a couple of months and not more than one year. APR represents 12 months of total interest on the borrowed amount, which confuses. Therefore, it is essential to compare payday loans using interest rates published as pa [per annum].
A daily interest rate is charged for daily borrowing. Financial Conduct Authority has capped the daily interest rate at 0.8%, which means 80p daily on every £100 borrowed. The majority of direct lenders offer this rate, but some are offering a little cheaper, so the per annum interest rate allows us to identify the best deal.
Missed or delayed payment charges
You may default a payment, due to inevitable circumstances. It is essential to know what lenders charge for delayed repayments. Some don’t charge but a few can charge £15 max. Ideally, you don’t desire to miss monthly installments.
If you are unsure that you cannot fulfill the repayment on the scheduled date then contact the creditor. There are chances they will adjust repayment dates without charging any penalties.
Comparing repayment frequency allows identify if you will make timely repayments. Ideally, every loan repayment date must fall on payday. It ensures your repayment is collected on time.
This may be impossible, but if it is not mentioned on their website or in the application forms then contact direct lenders to see if they have repayment frequency options.
Early repayment option
You agree to pay the borrowed amount with interest as mentioned in the loan agreement completely. Sometimes, you have sufficient cash to withdraw from the loan agreement. Short-term loans work on the daily interest rate.
Now, if you took a loan for 30 days and want to pay within 15 days then you are entitled to a rebate. Compare if lenders agree to early repayments and what are the early payment fees.
Anytime you choose to apply for a short-term loan compare it!