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Don’t Believe Everything You Hear -- A Payday Solution May Work For You


In order to make it easy for consumers to understand how much borrowing will actually cost them the lending industry regulatory body, the FSA, states that all loans companies have to show an APR (Annual Percentage Rate) on products that involve borrowing money. The theory here is that this will help you compare loans on a like for like basis by looking at their APRs.

In general terms this is a great way of comparing like for like loan products and as responsible lenders we support the need to make it easier for our customers to understand how much it will cost them to borrow money. But, using the APR rate on a payday loan doesn’t give you the whole picture that you should consider when you are thinking about applying for this kind of loan.

The APR on any payday loan will look high compared to standard loan products. But, this rate is applied on an annual basis and, as such, is a better measure of a long term loans than this kind of short term cash loan. Our payday loans, for example, are likely to last for just 31 days or less so using an annual rate measure here can be misleading.

In order to make things as simple as possible our loans come with a fixed flat fee to cover all your costs and, as you will set up repayment of your loan for your next payday, the APR is not applied. You will know how much you will be charged when you accept our loan and you will not have to worry about long-term interest charges as you will not owe us money for more than a few weeks until you are next paid.

You can easily compare the costs of our service against other lending solutions that you may call on when you need a short-term cash loan as we do, of course, provide you with an APR once you make an application. The costs of credit card cash advances and overdraft fees and penalties, for example, are widely available fro comparison here.

But, before assuming the worst, remember that a shortloans.co.uk solution will give you virtually immediate access to a small cash loan with no credit check and no need for collateral. Once you have repaid your borrowing next payday then you are debt free once again. Sometimes, it’s about more than the money.