When you need a payday loan, it’s easy to feel a little out of control. Clear And Fair have put together three quick tips to help you understand what makes a good payday loan and to make it easy to choose the right lender for you, taking back control. We let you compare payday loans online to get the best deal.
It’s important not to rush into a payday loan, even when your situation feels very urgent. Taking half an hour to compare lenders, check they’re FCA regulated and reading their information thoroughly will help you find a good payday loan -- reducing the stress of borrowing money in the long run.
A payday loan is a small, short-term loan that provides instant support before your next payday. They’re usually used when an unforeseen cost arises, like an emergency car repair or an unexpected bill, which is then paid off after your next payday. They can also be helpful for people who have bad credit as payday loans can still get approved on low credit scores (depending on what your credit score is).
They can be applied for online so you could get money on the same day if your application is approved. It can be easier to get a payday loan than it is to get other forms of loans and you usually get the money faster, although they commonly have a higher APR than other forms of credit and are therefore more expensive than other options.
It’s important to remember that even when the process is easy, choosing to borrow money should always be taken seriously as the loan must be repaid in time to prevent serious debt.
With this in mind, it’s important to find a good payday loan from a trusted lender.
The specific payday loan you need will depend on your individual circumstances, how much you need to borrow and for how long. However, in every situation there are a few things that make for a good payday loan.
A good payday lender will always be clear on the agreements and expectations that come with their short term loan. If you’re borrowing money, it’s essential that you’re completely aware of what the lender expects. While a lot of this is your responsibility -- you have to read the information thoroughly -- clarity is nonetheless an essential quality of a good payday loan.
If you have questions or don’t understand certain agreements in the loan, then you should talk to the lender. If anything seems unreasonable, then it’s a good idea to look at a different lender to check that what they’re asking for is normal.
If you’re ever worried, then talk to an expert. You should never enter into a loan, even a short term loan, without feeling clear about what the cost involves and what’s expected.
Check the APR and interest rates. Your lender should make the specific costs clear; if you tell them you want to borrow a certain amount of money, they will tell you the exact amount that you will need to pay back and by which date.
The FCA is the Financial Conduct Authority in the UK. It’s independent of the government and has the responsibility to regulate loans and loan companies. They help to ensure that everyone gets a fair loan and, through this, reduces the risk of people falling into debt. (It’s important to remember that any loan can lead to debt if you are unable to pay it back on time.)
Before getting a loan, check that the company is regulated by the FCA. All the companies listed on our price comparison service at Clear And Fair are authorised and regulated by the FCA so you can trust the results you get.
If you use a payday loan comparison site, such as Clear And Fair, it takes just minutes to compare prices. We always recommend comparing before you commit because it helps to separate a good loan from one that could be much more difficult to repay. It also helps to ensure you’re getting the best deal!
A good price for you will depend on the amount you want to borrow and for how long. When choosing a payday loan company, check that the price they’re quoting is comparable to other places.
Be sure to look out for information on the extra fees charged if you’re late on repayment.
Finding a good payday lender should be much easier if you follow our three top tips. Clear And Fair is a payday loan comparison site, which means that we help you to find the best lender for your loan requirements.
If you’re looking for a trusted lender, then you could consider those listed on our website. These are all FCA authorised and regulated and are open about their fees and payment expectations.
cashasap.co.uk is a direct lender that offers short term loans up to £750 (or £300 for new customers) for 1 day through to 35 days, or 1 month to 3 months.
247Moneybox is a direct lender that offers payday loans up to £1000 (or £200 for new customers). They offer loans for 7 days to 37 days.
Uncle Buck is a direct lender that offers instalment loans (up to £1000) for a duration of up to 6 months.
PiggyBank is a direct lender that offers both payday loans and instalment loans up to £1500 (or £1000 for new customers) for a duration between 7-35 days on payday loans and 2-5 months on instalment loans.
All the lenders that we’ve mentioned above are what are called ‘direct lenders’. This means they lend money directly, without any other parties involved.
In contrast, brokers will collect your information but will not make any lending decisions themselves. They will then have to share your information with a panel of lenders to see if anyone is able to approve you for a loan and will then pass this information on to you.
When you’re looking for a payday loan, we understand that you’ll want a quick solution. Taking a few minutes to compare prices, check the loan company is FCA regulated and that you know all the prices and expectations involved will benefit you in the long run.
Why not use Clear And Fair’s payday loans comparison tool? We’ve done all the hard work for you so you can get a good payday loan quickly and without the hassle.
All you need to know about short term loans
The best saving tips, budget ideas and ways to improve your financial health