What Are Cheap Payday Loans?
A cheap payday loan is a loan with low annual percentage rate (APR). The APR is the cost you pay per year when you borrow money expressed as a percentage. When a lender offers a low APR, your loan's total cost, including fees, will be lower.
Most people take out cheap payday loans because they are easier to access. You'll usually have to pay it back with your next paycheck when you get a payday loan. These two characteristics make a payday loan a desirable option when you need cash for an emergency.
Cheap payday loans allow you to borrow cash to assist you in fulfilling your financial commitments without worrying about your payday being further along the month. Payday loans are easier to obtain than other loans if you have a regular income. Online loans have a faster processing period than traditional loans, allowing you to meet your needs on time.
Because lenders understand that cheap payday loans are often used by people who need to deal with a financial emergency, they process them more quickly. Unlike traditional lenders, when you apply for a cheap payday loan, the lender ensures that you quickly get cash in your account.
What's the Interest Rate of Payday Loans?
Interest rates are calculated differently by different lenders. That is why, if you decide to take out a payday loan, you should shop around. Ask the lender to adequately explain their interest rates and the costs you can expect to pay.
The Financial Conduct Authority (FCA) requires lenders to disclose their prices on at least one price comparison site in the UK. The FCA must regulate the pricing comparison website. You can compare the rates of different lenders on any comparison website.
Most payday loan lenders will give you one month to repay the loan plus interest. The FCA set a daily interest rate cap of 0.8 percent for payday loans. They also stated clearly that no borrower should be made to repay more than twice the amount borrowed.
The interest cap rule applies whether you've just taken out the loan or it's been rolled over. The total cost of borrowing, including interest and fees, should not exceed 0.8 percent every day.
How Can I Utilise Cheap Payday Loans Online?
When you apply for a cheap payday loan online, the lenders ensure that you will receive a loan in a reasonable timeframe. Here are several ways can utilise a cheap payday loan online:
1. Comparison between different lenders
We offer a list of direct lenders in the UK to help you select a cheap loan provider. The first step is to choose a lender once you've decided on the amount that will best meet your needs.
2. Submit your loan request
Fill out their online application form once you've found a lender that suits your needs. It's worth noting that online cheap payday loans are credited to your account as soon as the lender approves.
3. Meet your financial obligation
When the funds are credited to your account, you can go ahead and allocate them according to your financial needs.
4. Repayment of the payday loan
Lenders expect you to make payments on your next payday or the agreed date; be sure you do so to avoid paying high penalty fees.
How much would you like?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
How Can I Get the Best Cheap Payday Loans?
Finding the best cheap payday loan might be challenging, especially if you are searching for one on your own. You can always count on us to get the best payday loan with our network of trusted lenders.
There are a few factors to consider when selecting the best cheap payday loans:
The amount of cash you need: Depending on your needs, the amount of money you can borrow with fast payday loans range from £100 to £5000. To avoid borrowing again, you must first calculate the amount that will effectively meet your emergency needs.
The repayment period: The best cheap payday loan allows you to choose your repayment period. You want a lender who will allow you to pay in three-month, six-month, twelve-month, or even one-month intervals if you are able.
Fair and cheaper interest rate: Although online loans have a higher interest rate, you should look for a lender with fairer terms. At the very least, one that adheres to FCA guidelines and does not require you to repay twice as much as you borrowed.
The total cost of borrowing: The best cheap payday loan is one in which the total cost of borrowing is clearly stated. The principal, interest, and any extra fees make up the overall cost of borrowing. You should fully understand the various fees you will be required to pay.
Are there late payment penalties? You must pay back online loans on time, including cheap payday loans. If you don't, you'll have to pay penalties on top of everything else. Before you decide to take out a cheap payday loan, make sure you'll be able to make all of your payments on time.
After you've considered all of the above, it'll be much easier for you to find the best cheap payday loans. You'll already know what you want, so you'll know how to choose the best cheap payday loan when you get offers from the lenders.
Frequently Asked Questions
How much can I borrow with cheap payday loans?
FastPaydayLoan has partnered with several cheap payday loan companies in the United Kingdom. We begin looking for a lender who can offer the lowest APR rate when we receive your application form. The lenders we partner with are capable of lending you up to £5000, depending on your ability to repay.
Is it safe to get low-interest payday loans?
It depends on the platform where you get the payday loan. You can always trust us as we offer bank-level security to protect your information. Payday loans with low-interest rates are safe as long as you can pay them back on time. They come in handy when you need cash quickly to deal with an emergency.
Am I eligible for a cheap payday loan?
To be eligible for a loan, you must first meet the following basic requirements:
- You must be a resident of the United Kingdom.
- The minimum age requirement is 18 years of age.
- You must have a bank account into which your loan will be deposited.
Why are payday loans so expensive?
Payday loans are costly regarding the interest you have to pay back since they often have a short repayment period. As a result, it's best to take out a loan that you can afford to repay on time. Payday loan providers usually charge you additional interest per day when you surpass the agreed-upon payback date.