Some tips for choosing a payday lender this year
The unsecured short term payday loan sector has grown significantly in the UK for the past few years and there are now many lenders vying for customers in this niche market. Borrowers didn’t have much choice in the past, so most ended up with unscrupulous lenders charging extortionate rates, mainly by a few high street and door step lenders. Even with the increase in online lenders today some lenders still charge very high rates, as some people who rely on unsecured short term payday loans and aren’t bothered about or understand the interest rates (APRs) would still borrow from them.
However, if you look at a payday lender like www.Gimmedosh.com which only selects reputable, reliable and competitive lenders who are determined to lower the rates (thus pushing down the APRs) and give the best service to their customers.
Here are some of the main considerations for choosing a payday lender:
1. Loan Qualification Criteria
Most short term payday lenders have similar criteria for approving applications, which must be met by all borrowers. Some lenders have additional requirements, which will exclude many consumers with a poor credit record. So, you should always look at the stated criteria before applying for a loan.
2. Short Term Interest Rate
The interest rates of some short term payday loans can be as high as 30% for 30 days, which would equate to as high as 2230% equivalent APR. Gimmedosh.com will always provide the lowest interest rates from the best specialist lenders, so you can rest assured that you’re getting the best rates available in the short term payday loan market.
3. Loan Amount and Term
Most short term payday lenders loan cash amounts from £100 to £1000 over 3 to 30 days. Some go up to £1500, but usually these are loaned over longer periods from 3 to 12 months. At Gimmedosh.com we recommend you only borrow an amount that you can afford payable in a time that is within your capability.
4. Licensed by the OFT
Gimmedosh.com only uses reputable and licensed payday lenders that conduct their business and after sales customer service based on a finance industry Code of Practice and OFT regulations. It is important to know about the way a lender would behave in case of missing the payment, as some can be rather aggressive and add many charges, fees and interest to the original loan amount.
5. No Credit Check
Some borrowers can only apply for unsecured loans that do not perform a credit check, as they either have a poor credit history or no rating at all. They use these loans to build up their credit record at the credit reference agencies. Gimmedosh.com uses lenders that do not carry out a credit check to allow such borrowers to have access to quick cash.
6. Speed of the Application Process
Many online brokers and lenders claim to process the application very quickly, but fail to deliver on such a promise. Gimmedosh.com uses an online application with a direct link to the preferred short term payday lenders that respond automatically within a few minutes. We then notify you as soon as we receive their response.
7. Fast Transfer of Dosh
This is a very important consideration for most borrowers, as they are in need of the cash for emergencies. Gimmedosh.com will get the lender to transfer the money as soon as they approve the loan and will notify the borrower by email or text message.
Try and find out as much from friends and family about their experience with any short term payday lenders and use the information to form your own opinion before deciding which company to use.