A payday lender will allow you to borrow £50-£1000 over a very short term period; usually no longer than 1 month, in return for very high interest rates. Generally speaking, with an average APR of 2,255%, borrowing £100 for 30 days from a payday lender will cost you around £30. This is a very expensive form of lending, and must only be used in an emergency, and you must ensure that you are financially able to repay the borrowed funds on time or you could incur serious charges.
How much will a Paydayl Loan cost to repay?
Repayments on a personal loan will take into account several factors including your personal situation. Therefore Search My Credit cannot state or guarantee how much repaying your loan will cost until your application form has been submitted and accepted by a finance provider on our panel.
What our customers can use as an indicative example however is the representative annual percentage rate (RAPR) that is displayed next to all loan products, regardless of credit status. In the United Kingdom all companies offering financial products directly or serving as a broker in these situations will always be required to present an RAPR% for customers to make informed decisions about the credit they may go ahead and loan. RAPR% is always intended to only be a representation of what 51% of customers could expect to be charged as interest on their loan amount, the final APR% a customer is quoted may be higher or lower than the RAPR% given.
Are there late/early payment charges?
The policy regarding charges to your loan will differ greatly depending on the lender who has accepted your application. These differences will be apparent in the amount charged and also the circumstances that will result in charges being added to your loan account.
In most cases, if you are late making a repayment on the amount you have borrowed the company that has funded your finance will add a late repayment charge onto your account with them. This type of penalty can range from £1 – £100 and should be outlined in your loan agreement before you electronically sign for your amount.
Additionally, with monthly repayment personal loans sometimes there could be a charge for repaying what you owe earlier than originally agreed. When looking into the cost of personal borrowing customers should always consult the loan agreement and personal terms and conditions of loaning before signing.
The majority of personal loan lenders working with Fair Price Compare do not charge fees to repay any outstanding amounts before the final agreed termination date. In fact early repayment, in full or in part, is often encouraged within the customers’ best interests. You should only be liable for the repayment of any interest that has accrued on the balance, plus the principal amount loaned. Some of the personal finance companies working with Fair Price Compare will either reduce the payment term or monthly repayment amount (in proportion) should you choose to make a voluntary additional payment.