Before applying for a payday loan it is essential that you research and search through as many lenders as possible to ensure that you find the best possible deal for yourself. You will be able to find the latest deals, reviews APR and interest rates for payday loans online as many lenders will advertise their services and terms and conditions on their website.
What makes payday loans a more popular choice than many loans available from some UK High street lenders is the fast and easy application process. With many UK payday lenders now only accepting online applications, it has never been easier for an individual to apply for one.
Not only has the application process for borrowing money been revolutionized by the internet but researching a lenders reputation and current interest rates is also available first hand. The FCA recently made it mandatory for all UK lenders to display their APR and Interest rates to potential customers online on their websites. This recent crackdown ensures that no individual is mislead by false information and interest rates as a method of enticing the customer to apply.
Things to look out for online
Reviews – Nothing speaks the truth like an online review from other customers in the same situation as you. Listen to their feedback, recommendations and come to your own decision on what s best for yourself.
Comparison Sites – Since the FCA’s recent crackdown making it mandatory for all UK Lenders to display their interest rates , comparison sites are able to show the latest up to date figures which makes it easy for yourself to find the cheapest possible rates. Use comparison sites to shop through a number of lenders in just 1 place!
Secure Website – Entering financial information online comes with risks, ensure that the website you are using will properly secure your personal data. How do i know if a website is secure? You see right at the top of the page, the section where you type a websites address into… Yes that’s the one…. You will notice at the start of the Lucky Loans web address it says “https”, the “s” after the “http” indicates that the site is secure.
Shopping around for payday loans can be quite a daunting task. In fact shopping around for anything to see how they compare with other products whether it’s an item of clothing, a car or even a savings account can be just as daunting!
Here at Lucky Loans we want to make the online payday loan application process as simple as possible, we understand that there are many different lenders that offer various packages and a huge range on payment terms and interest rates.
Customers are the main focus of our business, we don’t believe in making things difficult by charging high interest rates and difficult repayment terms. Our service is designed purely for those in need of additional finances, we understand that many individuals who borrow from us are already facing financial insecurity and we do not wish to add to those problems by charging unnecessary high interest rates.
We always recommend shopping around for the best possible quotes so we have done the hard work for you. Compare all the major lenders in our table below and see how Lucky Loans compares with other Lenders that are currently on the market. (Rates active as of March 2016)
The UK’s lending industry is one of the biggest in the world, with the payday loans sector accounting for nearly one third of the total borrowing amount in Britain alone. Payday loans are more popular than ever with a number of lenders competing against one another to offer the most attractive interest rates and payment plans in a bid to encourage borrowing amongst UK consumers. As a result, interest rates for the payday loans sector are at the lowest they have ever been.
Over 4 million people took out a payday loan in 2008 which equated to the overall amount of borrowing hitting the £2 billion mark. This figure is expected to hit £17 billion by 2017 with competitive rates and fast application process largely credited with the substantial growth witnessed in the United Kingdom.
Figures released by the Money Advice Service show the most common uses of payday loans with over £500 million of the £2 billion total being spent on funeral expenses for family and friends. The figures released also show a positive correlation in the growth of the UK Funeral planning industry which has now seen an increase in prices with the average funeral now costing £1,800.
Other uses for people applying for a payday loan include emergency/unexpected bills such as a car repair or home improvement bills such as plumbing and heating repairs.
Probably the most alarming figure released by the Money Advice Service was the admission that many borrowers had taken out a payday loan in order to pay for a night out or even an item of clothing. With most cases falling into the 18 – 24 age bracket, the uses of payday loans seem to be somewhat broad. it’s clear that the easy application process and very fast cash transfers are highly attractive to many individuals in need of additional finance.
Ocean Capital Credit Ltd always recommend speaking to an adviser before applying for a payday loan.
Do you live in one of the UK’s most indebted areas?
Recent figures released by the Money Advice Service has pinpointed the most indebted areas throughout the UK. 1 in 6 adults or simply translated to over 8 million UK adults struggle to keep on top of their borrowing and monthly bills.
Those most likely to be over indebted are people that rent a property, single parents and families with 3 or more children. The figures suggest that adults with children are 50% more like to be in debt than adults without any children or dependents.
Individuals that rent accommodation are most likely to be in debt in particular those that rent social housing 29% compared to individuals that rent from a private landlords with an 8% decrease at just 21%.
Over 160,000 people took part in the survey conducted by the Money advice service which captured different information such as age, income, homeowner status and monthly borrowing amount.
The figure shows the areas of Britain that are most likely to fall into debt.
The figures released show a direct correlation in the amount of people in debt that are actively applying for various payday loans as an attempt to cover persistent monthly overheads and previous borrowing rates.
The latest findings come on the back of a report that suggested a “Savings Crisis” as half of the population in Britain does not have a financial cushion to fall back on which many finance experts have identified as the main reason for individuals opting for payday loans and short term finance to help with their monthly cash flow.
In addition to this 20% of people admit that they have been unable to make adequate plans for their retirement with many people unable to actively contribute to a monthly pension plan due to already tight finances.
Cash flow is a term that most people relate to business. Businesses rely on cash flow in order to pay overheads such as wages, new stock purchases, advertising fees and any other monthly bills such as rent and rates.
Imagine yourself as a business, in the sense that you have a number of overheads to pay for such as food, mortgages, electricity bills, car repayments and insurances etc. You are no different to a business, you rely on a steady income to help you stay on top of your monthly bills and maintain your standard of living. You are fully aware of what bills you have going out every month and how much money you need to cover those repayments however that is still no guarantee of being able to pay every single bill that faces you that month.
For many businesses one of the only options to ease cash flow is to borrow money in order to cover upcoming bills and it is exactly the same option that is available to the majority of UK Consumers. Payday loans are the go to option for many consumers as they are a fast and short term solution that can prevent you having to take out a long term finance agreement with your bank.
In 2015 the number one cash flow problem within UK households were unexpected bills such as car repairs, funeral arrangements of a loved one and even home repairs such as boiler maintenance. Same day payday loans are a fast and very short term financial solution to help you stay in control of any unexpected monthly bills that you may be facing with the average payday loan borrowed for just 7 days up to 2 months.
Access to very fast and short term finance has stopped many individuals entering a loan agreement with banks and other lenders that only offer a long term borrowing period which can result in much larger repayment amount compared to what was initially borrowed. Many payday lenders now offer 15 minute cash transfers which has prevented many UK households from appearing overdrawn in their bank account which can also damage an individuals credit rating history.
Many lenders offering payday loans have to follow the same eligibility checks that were previously introduced by the FCA in early 2015. Due to the very strictly regulated payday loan industry, all potential lenders have to carry out a number of eligibility check on any applicant to ensure that the individual can repay any borrowed finance without getting into any financial difficulty in doing so.
Eligibility checks take into consideration a number of things from age, employment history, salary and even monthly bills. Although most of the questions that various lenders need to ask are not decisive there are a few that are and can potentially prevent you from being accepted for any sort of finance. (listed below)
Are you a UK resident and over the age of 18?
Any individual applying for any sort of finance is required to be a Full UK resident with a UK address. These checks will enable banks and many lenders to ensure that you are not using someone else’s bank account information and can help protect individuals from potential fraudulent activities. Applicants are required to be over the age of 18 which is the legal minimum age requirement in the UK for an individual to apply for any form of finance.
Do you receive a regular income?
All applicants will need to be receiving a regular form of income in order to repay any borrowed funds without the potential of falling into financial difficulty whilst trying to do so. As well as protecting the Lender this eligibility check was also enforced to protect the individual to ensure that they could not take out finance if they were unable to repay the full amount plus interest which can potential damage an individuals credit score.
Many lenders offer same day payday loans so take your time and review your various options before committing to borrowing any form of finance.
Lucky Loans is a registered Trading Name of Ocean Capital Credit Ltd which is registered in England and Wales (Company number 9414413), Registered Office; Manor House, 35 St. Thomas's Road, Chorley, PR7 1HP. Licenced by the Information Commissioners Office, (registration number ZA152869). Lucky Loans in an Introducer Appointed Representative of Quint Group Limited, and is entered on the Financial Services Register under reference number 732100 authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 669450. *Subject to lenders approval. **Time taken to transfer funds may vary depending on lender