Things to check before agreeing to Short Term Payday Loans
December 13, 2017
In a bid to receive the funds as soon as possible, it can be pretty tempting to rush through a loan application. However, we advise you to remain calm and think through the loan before agreeing to anything. It is best for both parties, that considerations are met before ‘signing on the dotted line’ so to speak.
Why should I take my time when applying for short term payday loans?
Failure to think through a loan carefully can result in an agreement that is not financially viable for your situation. Even worse, if you agree to a loan without putting together a budget plan to ensure you can make the repayments, this could result in late charges and further money problems.
Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed) APR rates range from 45.3% APR to 1575% Max APR. Your APR rate will be based on your circumstances.
Things to check before agreeing to short term payday loans:
Broker v lender
First of all, do you want to go straight through to a direct lender, or use a broker such as Loanline? By using a broker, you ultimately save time, as the broker will contact a variety of different lenders, looking to get you approved. If you do want to save some time, and you’re unsure about whether or not you would get accepted for a loan, then using a broker could be advantageous.
Check the interest rates
This may seem like such an obvious call, but it is important that you check how much interest you will be paying in total. Before agreeing to any loan, you will be presented with the APR percentage and total amount needed to be repaid. Understand whether you feel this is a suitable offer, and secondly, calculate whether or not you can make the repayments without problems.
Create a budget planner
It is vital that you create a budget planner, especially if you’re looking for short term payday loans that will exceed three months. Short-sightedness can cause problems when it comes to budget planners. You’ll find yourself in some trouble if your car insurance expires six months down the line, and you didn’t factor this into your budget plan for a 12 month short term payday loan.
Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed) APR rates range from 45.3% APR to 1575% Max APR. Your APR rate will be based on your circumstances.
