The Very Best Loans with Loantra
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*Rates from 4.7% to 278%
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Find a Loan Shark
A loan shark is a company or individual that offers loans with exceedingly high interest rates. The term is colloquial, meaning that there is no strict definition for it and it can be applied in a range of different situations and to a range of different bodies and persons. As a borrower, it is your job to avoid trying to find a loan shark – even when you need money desperately!
Are Loan Sharks Illegal?
The classic image of a loan shark is of course a gangster. The term loan shark can be used to describe illegal activities in some cases and this is precisely how mobsters of old would operate. With lots of liquid assets (gained via illicit means), these thugs would offer money to the desperate but would attach such a high interest rate that those borrowers would end up in their debt for long periods – sometimes indefinitely.
To enforce these debts, the classic loan sharks of old would use threats of blackmail or violence. And this would eventually morph into ‘protection money’ and ‘favors’.
8 Things to Consider to Find the Best Payday Lenders Online
Payday loans are increasingly becoming popular all over the UK and lot of this has to do with the kind of ease, speed, and convenience that the short-term loan products provide. What’s more, all types of credit rating are welcome to apply which means that you can still get approved even if you have a rather unappealing credit score
It’s availability online also means that borrowers can access instant funding any time of the day as long as they have a device that is connected to the internet. But with the abundance of online payday loan lenders to choose from in the UK today, how will you know which one is the best for your given needs and present circumstances? You can go about this by comparing payday lenders online and below we will show you how.
Here are the things you need to follow to find the best payday lenders online.
- ) Try to determine if it’s a direct lender or not
When you want to obtain a payday loan online, there are two types of lenders that can cater your need: a direct lender and a broker. Direct payday lenders are those legally commissioned by the FCA to provide payday loans to borrowers in the UK.
Brokers, on the other hand, are also legal entities in the payday loan industry that can help a person secure a short-term, unsecured loan with ease. They however, will not be the ones to directly hand you the loan but will refer you to reputable direct lenders across the web.
Direct lenders and brokers have their own set of advantages and disadvantages. The choice on whether to take out a payday loan from either one will depend entirely on your preference.
- ) The loan amount that you need
Normally, payday lenders will allow you to borrow small amounts of credit, anywhere from 50 pounds to as much as a thousand. But because of the competitive lending industry in the UK today, there are now plenty of lenders who are willing and able to lend more than a thousand pounds. With that being said, try to compare lenders based on their ability to give you the amount you are looking for.
3.) Compare the requirements
So you can be approved of a payday loan, you will need to meet some basic eligibility requirements first. They normally include being at the legal borrowing age of 18, having an income that can afford the loan and its repayments, and an active UK bank account. However, eligibility requirements vary from lender to lender so be sure that you check on them first before you apply. In the end, choose the lender whose eligibility requirements are something that you can comfortably satisfy.
- ) The repayments
Repayments can also differ from one lender to the next. There are lenders who allow multiple repayments while there are those who have a strict, one single payment policy. Multiple repayments appeal to numerous borrowers because they are easier to complete. However, if a single lump sum payment is more ideal to your budget, then by all means opt with it. Choosing payday lenders based on their repayment terms and conditions is crucial if you want to enjoy a loan that is suitable to your needs and present circumstances.
- ) FCA licensed
While majority of payday lenders in the UK are legit, there are a few scams and loan sharks that you need to be wary of. These types of illicit lenders are notorious for exploiting borrowers and stealing their hard earned cash. So you can avoid them, be sure to check the lender if its licensed by the FCA or Financial Conduct Authority before you apply. An FCA license will tell you that its legal and the payday loans you will be enjoying is safe and secured. You will normally see a lender’s FCA license in the bottom portion of its website. You can also view directly in the FCA’s site as well.
- ) The payday loan products
There are different types of payday loans and the best one will depend entirely on your needs and present financial situation. Some of the most popular options in the UK include:
- No Credit Check payday loans
- Instant Payday loans
- Installment Payday loans
- Bad Credit Payday loans
- Payday loans for the unemployed
No credit check and bad credit payday loans are ideal for people who have poor or non-existent credit histories while payday loans for the unemployed work best for those who don’t have jobs but have some form of income that they depend on like a business or government benefits. You can also opt with installment type payday loans that allow you to pay off your credit through fixed, monthly installments. With that being said, choose a lender that can provide you with the kind of payday loan that suits you best.
- ) Provides the lowest APR
The total cost of your loan is determined by its APR or Annual Percentage Rate. The higher the APR, the more expensive the loan will be. Choose payday lenders that provide the lowest APR because it will obviously save you more money. Normally, you will know what the APR will be before you apply for a payday loan as lenders normally advertise them in their websites. You can also rely on comparison sites so you will know immediately which payday lenders provide the lowest APR in the market.
8.) Instant Payouts
Lastly, always consider how long it would take for the lender to transfer the loan amount to your bank account. Obviously, the quicker the payout the better it would be for you especially if you are faced with an emergency situation. There are plenty of lenders that can process your loan in a matter of minutes and deposit the funds to your account on the same day while there are those that can accomplish this a bit longer. Try to opt for payday lenders that provide same day funding so you can use the money immediately after you have completed your application.
In the end, it is up to you to choose the kind of lender that will cater your need for instant funding. There are numerous payday lenders in the UK and if you follow the 8 things that have been mentioned above, finding the ideal one would be easy.
How to Tell a Loan Shark
Some companies that you see advertised on the web or online are very much loan sharks. That’s not what we do here though and it’s certainly not what every payday lender is.
Payday loans do come with higher-than-average interest rates and these do mean that borrowers end up paying higher fees than they might do with other financial products. While this is true though, the loans are also designed to be paid for in a single installment, normally after just a few weeks. They are called ‘payday loans’ because they are designed as a way to ‘tide you over’ until payday.
When you pay this amount promptly then, you’ll find that the APR doesn’t add up to that much – sometimes just $10-$15.
Ultimately, whether or not you find a loan shark will depend on the nature and the ethics of the company. When you are desperate for a loan, you will be susceptible to being taken advantage of. Don’t let this happen to you – be savvy, read the small-print and make sure that you know exactly how much you’re going to end up paying before you sign on the dotted line!
See How We Compare to Our Competitors
Representative 49.9% APR (variable). Borrowing £4000 over 36 months, repaying £195.16 per month, total repayable £7,025.76. Interest rate 49.9% (variable). Repayment terms available between 1 and 5 years. Maximum APR 99.99%
Loantra is a licensed credit broker and not a lender.
We will never charge you for our service and the lender will not increase the rate to cover our fee to them.
We work with over 40 different lenders to bring you the very best rates from across the UK market.
Representative 305.9% APR. Representative example: £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
Warning: Late repayment can cause you serious money problems. For help, go to moneyadvice.org.uk.
Do not borrow more than you can pay back as defaulting on payments can lead to serious monetary problems.
Any collateral you have against the amount may be at risk of repossession.
5 most recent personal loan reviews
My personal loan from NatWest was planned in advance because I like to do plenty of research before committing to something as important as a building extension. I wanted to make sure the loan would be possible and that it was at a competitive rate before I started employing architects and builders. I was in regular contact with our local branch’s loan adviser and they finally sorted out a very good loan for me and once that was agreed I got on to the job of planning this extension. We’d already had the go ahead from the local council so it was all systems go once that all important loan was finalised. Sometimes it’s best to deal with your own bank for such an important loan and I am pleased that I entrusted NatWest with my loan.
Review posted by Wayne Crouch, Plymouth
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In our position your company treats us well. We have the income but unfortunately due to circumstances beyond our control our credit rating is bad. Thank you Uswitch for giving us a chance.
Review posted by Neil Morrison, Perth
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Suprised at ease of application. Never wanted to use these kind of things but had a very tough month and needed a few pounds before payday. After checking different options I found the small amount to payback manageable and it’s all payed back 2 days after payday. Easy process with quick response.
Review posted by Anthony Bell, Chelmsford
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