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Find out more about how to compare different payday loan providers, and learn more about alternative short-term loans. When comparing payday loans, it’s important that you look for not only the cheapest interest rates but a lender who can offer what you need in terms of the loan amount, speed of approval and flexibility around repayments. With so many lenders out there and lots of considerations to factor into your application, it pays to do your research and take your time with it. Taking on a loan is a big financial commitment and you need to be sure you have everything you need in place before you apply.
Sunny can help with our detailed guides on each of the major lenders out there, but we’ve also created this guide on how to compare payday loans to find the right one for you and your needs.
Here are a few things to look for when it comes to finding a lender that works for you.
Do they offer the right product for you?
Not all so-called payday lenders offer payday loans, in fact, many now offer short-term loans that can be paid in instalments instead of stretching people and requiring them to find all the cash in a short period of time. Here are the types of loans you could consider:
Yes, much like when you shop around for car insurance or cover for your home, there are websites dedicated to making comparing payday loans easier. All the Lenders is perhaps the best-known one, allowing you to input what you want to borrow and for how long and throwing up a range of lenders that match.
When comparing any type of loan, think about these points before you go ahead with an application:
Representative Example: Borrowing: £1000 for 18 months, Total Repayable: £1853.43, Total Interest: £853.43, Interest Rate (Variable): 89.9%. Rates between 9.3% APR and 1721% APR – your no-obligation quote and APR will be based on your personal circumstances. Loan term lengths from 3 to 36 months. Subject to lender’s requirements and approval.
Sunny Loans is a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Loan repayment terms are 3-36 month loans.
Warning: Late repayment can cause you serious money problems. For help, go to www.moneyhelper.org.uk.
Check this before going ahead. It is important you ensure the lender has been authorised to operate by the financial services regulator. Authorisation by the regulator means that a lender meets certain standards of operation, and also ensures that you will be protected should any issues arise later in your borrowing journey. You can search for any lenders you’re considering here.
A lender that only offers up to £500 isn’t going to be of help if you need the money for an expensive car repair of £800, as you’d need to find the remainder by potentially borrowing again. Look for lenders that offer the whole amount you need, but avoid the temptation to borrow more than required for the matter at hand.
While this need not be a deal-breaker, it’s important to be aware of whether the lender you’ve chosen charges any fees on top of the interest payable on the loan. Most who do charge fees charge a £15 late payment fee, which, while you hope you’ll never be in a situation where you have to pay it, is important to know about and find a lender who won’t charge you this fee if possible.
It’s important you feel comfortable using your chosen lender’s service, and are able to find the information you need easily when you need it. A complicated website with a number of hurdles to overcome just to get into your online account, or having to call a lender’s customer service team just to check your balance isn’t ideal. Look into this before you get started.
Very few lenders offer the ability to tell you if you’re likely to be approved before you submit your application. However, this is something we offer here at Sunny. Our broker partner’s lenders do this by carrying out a soft search of your credit report, which enables you to find out if you are likely to be accepted with no impact on your credit rating. If you’re likely to be approved, then you can decide if you want to go ahead and submit your application, at which point the lender will carry out a hard credit check, which does impact your credit rating. Many lenders can only tell you if you’ve been approved or not once you’ve submitted your application and they’ve carried out their own hard credit check, which is noted on your credit report and means that even if you are not accepted for a loan, your credit score will be impacted.
It’s very important that you can factor your loan repayments into your monthly budget, alongside your regular expenses. You should be able to comfortably pay back what you’ve borrowed without having to cut back on your essential expenses, and ideally have a little left over as well. If you’re already stretched to your limit and a loan is going to impact your ability to pay your bills or pay for necessary shopping, then it’s important you speak to a free and impartial financial advice service before making any decisions about borrowing money. The Money Helper or StepChange are good examples of the type of organisations that will be able to help you.