Availing payday loan is very simple and most borrowers find no difficulty in getting them. Having said this, you must also understand that payday loans can also be very dangerous if you happen to be an irresponsible borrower.
Payday loan has been designed for people who need emergency money within £1000 to meet their expenses and when they get their next pay they should be able to repay it back. If you are sure that you can meet this condition then it makes sense to apply for such loan, otherwise it can put you under debt.
Loanpig.co.uk offers short term loans to residents of the UK and you can get all details about them by visiting their website. You can also get payday loans from them and they are FCA approved too. If they cannot offer you any suitable loan then they will introduce you to few other lenders to get you a loan.
How much payday loans will cost you?
As a matter of fact, no single rate of interest will be applicable for payday loans, which means your cost of borrowing may vary between different lenders.
Usually, payday loan interest will be expressed in terms of APR that will take into account the entire cost involved in your loan. This means that what you will find in the quotation, you will end up paying that back, which is an easy way to make comparison between different providers of payday loan.
Also, since payday loans are considered as short-term loan hence, they will attract higher rate of interest than any other borrowing options. Therefore, it is very important to plan much ahead before accepting a payday loan because you will like to make payment of all instalments well in time.
Few payday loans are available who charge on daily interest basis. Under such scenario, maximum interest that you will pay will be 0.8% daily on your loan until you repay the loan.
What will happen if you make payment early or late?
Based on your lender, many of you may like to pay back your entire loan amount earlier than schedule. This will certainly be quite good option as you can save some amount of money than what was expected, and make yourself debt-free much ahead of schedule.
However, all lenders will not accept early repayment. Few may offer you the option of paying early, but they will charge certain fee for early payment, while few others will allow you to make repayment of loan much earlier than scheduled without any additional cost.
However, in case you are in a situation that you cannot pay as per schedule then for making late payment on your loan instalment, your loan may fall into arrears. If such thing happens then your loan will attract more interest, which will mean that you have to pay back more amount than what was originally expected.
By making repayment of loan behind your schedule can always negatively affect credit score, which will make it more difficult to borrow loan in the future.