Short Term Lenders
The number of short term lenders out there has grown and grown over the years. Why? Because sometimes, even if we budget down to the last penny every month, an unexpected expense crops up and we need a short term loan to tide us over until our next payday and so the demand for short term lenders has grown.
Short term lenders like Wonga and QuickQuid have become household names and we know you can’t watch more than half an hour of TV without seeing an advert for a short term lender. The good news for you is that with so many short term lenders now on the market, you have lots of options and can shop around for the best deal for you. There are now comparison sites available to make this job a little easier. Sites such as www.money.co.uk and www.thelenderslist.co.uk allows you to view all the top players in the payday loan sector, their interest charges and fees and a link to their website so you can make the decision that is suitable for you.
Here are our 'PiggyBank top tips' for comparing short term lenders.
Don’t be scared by the big numbers
Short term lenders have a reputation for charging high levels of interest and some of them do! However, this isn’t always the case at all. For legal reasons, short term lenders have to display something called representative APR on their websites. For example, the representative APR of 1270% that we have to show on our homepage is a legal requirement set out by the Financial Conduct Authority (FCA) and the Consumer Credit Act.
Do your homework
It’s very easy to see a short term lender on TV or coming up on Google and just going with them because they’re the first website you’ve seen. Remember, when it comes to your short term loan, you have the power, use those comparison sites! Lots of short term lenders, mean lots of choices for you. Take your time, find one that gives you a competitive interest rate and gets your money to you nice and quickly :), but make sure their customer service is just as good. There may also be additional services that some lenders offer which you may benefit from. With PiggyBank you can access your active account online and can make changes to it as you wish. Without doing your research you may not know which is best for you.
If they’re responsible, make sure you are too
There’s a big difference between your average short term lender and a responsible short term lender. Responsible lenders will:
- Never encourage you to borrow more than you can afford. PiggyBank also recommends that you research every option available to you before applying for a short term loan with us. Getting free impartial advice is encouraged, so visit The Money Advice service at www.moneyadviceservice.org.uk before you make any decisions.
- Make sure they show you exactly what you should expect to pay in terms of interest and fees before you take out your short term loan. PiggyBank clearly displays our representative APR rate on our website and provide a loan calculator so you can see exactly the amount you should expect to pay back once any necessary charges have been added.
- Run a full set of credit checks to ensure that they’re happy you can afford the amount of money you’re asking for. PiggyBank carry out extensive affordability checks, including employment and credit checking. You must also have a bank account and valid debit card.
It’s really important when you’re looking for a short term lender that you choose one that is being responsible. It gives you peace of mind that you’re not going to be given a cash loan you can’t afford or be charged big fees without knowing. And remember, If your short term lender is being responsible, don’t forget you should be too. Always give the absolute truth about what you earn and can afford. It is in your best interest and will ensure you are not falling into financial hardship.
Before you take out a PiggyBank short term loan, you need to ask yourself whether borrowing money is the right thing for you. If you can cut down on your spending or put off buying something until you’ve saved for it, do that. If you are borrowing money to make repayments on other loans and debts, you may be in a vicious circle and it might not be the best thing to do. If you think you need help with your debts, you can contact the Step Change Debt Charity service at www.stepchange.org.
Why Choose Us?
- Direct Lender
- No Payout Fee
- No Hidden Costs
- Fast Online Application
- Multiple Repayment Options
- 100% UK Based
- Fully Authorised by the Financial Conduct Authority