During your financial emergencies, you may borrow a payday loan without understanding the consequences and facts. You may plan to borrow to return lump sum of the same amount, including interest, but you may end up repaying more due to improper handling and negligence.
There may be a need for an urgent healthcare check-ups, unexpected high electric bills or essential maintenance for which you may need to borrow a payday loan. You may get trapped in loan repayment cycle due to lack of proper knowledge about payday loan schemes of your lender.
To avoid borrowing again just after your next salary, you must ask a few relevant questions from your payday loan provider for a better understanding of their loan schemes and repayment terms.
- Is He/she a direct lender or a broker?
A reputed and authorized lender adheres to the rules and regulations of the U.K Financial Conduct Authority to provide uniform interest rate and transparent scheme. This regulatory body protects the customers from high-interest rate and repayment traps of local lenders.
Avoid dealing with unauthorized brokers as they may sell your personal information to the highest bidder among the lenders to earn a better commission. Generally, such local lenders and brokers take advantage of your emergency financial needs which may put you in a potentially high risk.
You may ask the registration number of your payday loan lender to verify on the FCA website.
- Transparent Interest rate and Annual Percentage Rate (APR)
The FCA closely monitors the APR, loan terms and outstanding loans of its authorized payday loan lenders to protect you financially. A faithful lender will clearly mention about its interest rate, APR and other loan terms in its deal. You must ask them to provide detailed calculations and net repayable amount at the end of the loan tenure. It will avoid any tricky hidden fees which you may no afford.
Most of the reputed loan providers have online portal for instant loan facility with an online loan calculator. LoanPig is one of the best and trusted Payday Loans Provider | Direct UK Lender. With their corporate office in Manchester, UK, they provide an advanced and secure platform to avail online loans. They are the direct payday loan providers as well as a broker.
If they do not have a suitable scheme for your loan requirement, they will directly link you to one of their trusted lenders among the U.K.’s largest panel of lenders. They will not ask you to pay any upfront fee to them. Your personal data and transaction history mentioned in their application forms are safely maintained in accordance with Data Protection Act 2018.
- Late repayment charges
Ask their provision for late repayment charges, in case if you miss a due date. A reliable and trustworthy lender will always come with an idea to minimize your extra late repayment charges. Their main focus will be to get back their invested money and valid interest amount instead of earning extra money. This provision must be clearly mentioned in their deal.
- Deal cancellation charges
In case, you want to cancel the deal, ask whether they provide any grace period to back out and cancellation charges that you need to pay.