Category Archives: Payday Loans

Payday Loan Fraudster Used Tinder to Lure and Fleece Women of Thousands

Payday Loan Fraudster Used Tinder to Lure and Fleece Women of Thousands

30-year-old fraudster Jonathan Frame used Tinder, a popular dating application, to lure and fleece lonely women. The Swinton conman would meet lonely women, steal their identity and then run up debt in their names. He would use the stolen personal information to take out payday loans as well as apply for credit cards and overdrafts according to a Manchester Crown Court hearing.

Frame would go as far as rifle through the mail of his unsuspecting victims,  set up fake email accounts and even call up lenders on behalf of his victims to get credit cards activated. In such instances, he would lie that his girlfriend at the time was deaf.
Frame spent part of his proceeds on designer clothes and restaurant meals with his unsuspecting victims. He was also ”kind” enough to buy his victims expensive gifts with part of the money.

During his 1st February 2017 Crown Court sentencing, Frame pleaded for a suspended jail
sentence claiming he had an honest job at a high-end street store. His plea, however, fell on deaf ears as presiding Judge Michael Leeming ruled that community punishment wasn’t an option since fraud was what Frame did for a living.

Frame has been jailed for one and a half years. He admitted to fraudulent offences amounting to £6,990 against two women he met in 2014 on Tinder. During his sentencing, one of the women he fleeced told the Crown Court she had contemplated suicide because of Frame’s actions. The other woman confessed to being scared of dating in the future.
Frame fleeced his first victim £6,221 in a record seven weeks. The woman is liable for the debts accumulated under her name despite being unaware of what was going on. This is because she shared personal details with Frame. The woman fell for Frame’s charm as well as his persuasive nature. She confessed to thinking Frame loved her genuinely, so she trusted him and gave him access to her house and car. Frame used this access to intercept her post and facilitate the fraud.

According to the woman, Frame has ruined her life. She also feels betrayed and doesn’t expect to live debt-free until she turns 31 in 2022. She also expects to struggle securing
a mortgage given the debts she has accumulated. She was just 23 years old when she met Frame. Frame targeted his second victim shortly after fleecing his first victim. His second victim discovered Frame was a fraudster when he left one day for good. She was fleeced of £569 in 13 days.

This is not the first time Frame is finding himself on the wrong side of the law. Frame has been convicted for 21 offences previously mainly for fraud, theft, and far-dodging. The offences date back ten years. In his latest case, Frame’s barrister Paul Hodgkinson defended his client claiming he was genuinely interested in the relationships with his victims despite the impression that he was out to con lonely women. Hodgkinson went ahead and stated that Frame was apologetic for his actions and was only keen on impressing his partners. Judge Michael Leeming wasn’t convinced of Frame’s innocence resulting in an 18-month jail term for the payday loan fraudster.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
What Are Bridging Loans?

What Are Bridging Loans?

Bridging loans are short term loans extended to individuals who have to pay their debt soon but haven’t had access to their main line of credit yet. Bridging loans ‘bridge’ the gap that exists when you have pressing cash needs that must be attended to immediately but you still have to wait for your main line of credit to become available.

Bridging loans are popular in real estate investments. They resemble payday loans but in a real estate context. The loans usually facilitate property purchases that wouldn’t normally be possible. In today’s world of downsizing and upgrading homes, the chances of finding your next home before you clear your current mortgage loan is very high. In such a case, a bridging loan will be perfect for you.

Bridging loans are short term loans like payday loans. However, they are larger. The loans are also high-interest. Bridging loans are typically meant to help you buy new property while you are waiting to sell/receive proceeds from the sale of existing property. The loans are also used to help individuals planning to sell their property/home quickly after renovating. Bridging loans are also ideal for individuals planning to buy property at an auction.

How do bridging loans work?

The loan amount you receive is usually dictated by the equity you have in your existing property. Interest is usually calculated on a short term basis i.e. on the term of the loan which is usually less than a year. Your credit rating or credit score is also considered when calculating interest. Banks also consider other normal lending criteria. Borrowers are expected to make their repayments normally until the property in question is sold. Bridging loans also attract new property purchase costs such as legal fees and stamp duty.

When are bridging loans good for you?

Bridging loans are great options for property investments that require large sums of money in a short time. In such instances, traditional forms of financing aren’t suitable because they take too long to process. Banks take long to process mortgage loan applications. In cases where you need to buy property from an auction, it might not be possible to secure financing in time if you apply for a typical mortgage loan.
Some borrowers also use bridging loans today as simple alternatives to mainstream lending. If you home has some equity, you can always get a bridging loan to take care of some pressing cash needs. It is, however, advisable to think about all your options before using a bridging loan as an alternative to mainstream lending. Bridging loans are perfect when you have a clear exit strategy i.e. an ongoing property sale that is about to be concluded. A bridging loan will also be perfect for you when you intend to use it for property investment purposes only i.e. when you want to a buy-to-let mortgage.

You should also consider taking a bridging loan when you are sure you can get access to a mortgage loan with a mainstream lender. This is important since it eliminates the risk of losing your home/property in case you are unable to meet your repayment obligations. In simpler terms, you shouldn’t take a bridging loan if you can’t qualify for a typical mortgage loan. The FCA has raised concerns about financial advisers recommending bridging loans too quickly. This can be attributed to the high-risk and high-interest aspect of such loans. Ideally, you should tread carefully if you haven’t taken on a bridging loan before. Besides the high-risk and high-interest aspect, bridging loans also tend to attract hefty fees and some hidden charges as well which could easily render the loan unmanageable.

In a nutshell, a bridging loan shouldn’t be viewed as a suitable alternative to traditional lending. Short term loans like payday loans are better alternatives since there are lenders that offer high borrowing limits capable of catering for substantial cash needs.

Getting a bridging loan

There are many bridging lenders in the UK ranging from small one-man bands to professional outfits regulated by the FCA. When taking out a bridging loan, stick to lenders who are regulated by the FCA since such lenders are bound legally to recommend bridging loans when they are appropriate for you.
 

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
How payday loans differ in other countries: UK vs. U.S

How payday loans differ in other countries: UK vs. U.S

Payday loans are the most popular short term loans globally. The loans are available in all major economies globally. If you care to know how payday loans vary from one country to another (particularly the UK and U.S.,) look no further. Here’s what you need to know;

Payday loans in the UK

Although payday loans originated in the U.S., they have grown more rapidly in the UK. According to a recent PWC study, over 40% of all youth in the UK use payday loans. The UK payday loan industry is estimated to be worth billions of pounds today.

Typical UK payday loans range up to £500. Many UK payday loan lenders, however, offer flexible lending limits amounting to more than £1,000. Interest rates stand at approximately 25% per month for typical payday loans. There are however many lenders charging way less.

Largest Participants 

Wonga is the largest UK payday loan lender with approximately 30% market share. The second largest lender is Dollar Financial Group which owns the Money Shop as well as payday lenders; Payday UK, Ladder Loans, and Payday Express.

Regulation

The UK payday loan industry is regulated by the FCA (Financial Conduct Authority). The FCA took over the regulatory role from the FSA back in 2014 in an effort to exert tighter control on rogue payday loan lenders.
In January 2015, the FCA introduced strict regulations that guide the payday loan industry to date. For instance, payday loan lenders in the UK should not charge more than 0.8% interest per day. The total charges on all payday loans including interest and default charges are also capped at 100% of the total amount borrowed.

Status

The UK payday loans industry is currently transforming. The industry has had a bad name for years due to an increasing number of rogue lenders using unfair lending practices. The tightening regulation has however brought back sanity to the industry. The FCA has fined numerous payday loan lenders found guilty of using unfair lending practices. Although many lenders have closed shop, there is still a high demand for payday loans in the UK.

Payday loans in the U.S.

Payday loans originated from the U.S. They are also known as; cash advances, salary loans, payroll loans, cash advance loans, payday advance, etc. The loans date back to the 1900s where they were known as salary purchases. Initially, lenders would buy a borrower’s next salary for less and then disburse the difference to the borrower after deducting all applicable charges. Fast forward today, the industry has grown from 500 lenders to 22,000+ lenders. The U.S. payday loan industry is estimated to be worth over $46 billion today.

Regulation

Payday loan regulation in the U.S. varies widely from one state to another. To avoid unfair lending practices, many jurisdictions in the U.S. have APR (annual percentage rate) limits that all lenders must adhere to. It’s also worth noting that some jurisdictions in the U.S. have outlawed payday loans completely i.e. Georgia. In total, 14 states have forbidden payday lending. Other jurisdictions have few restrictions on lenders.

Some states also have laws limiting borrowers from taking payday loans repeatedly. Such states include Michigan, Illinois, Florida, Indiana and New Mexico just to mention a few. These states have statewide databases that require lenders to assess a customer’s eligibility to get a payday loan before issuing the loan. There is also regulation restricting the number of times a payday loan borrower can roll over their loan. Some states restrict rollovers i.e. Arizona. Other states i.e. Delaware allow a maximum of four rollovers.

Initially, payday loan rates were restricted in most U.S. states by the USLL (Uniform Small Loan Laws). The USLL restricted the rates at 36 to 40% APR.

Status

The U.S. payday loan industry caters for the young and poor mostly, low-income communities residing near military bases. A recent study conducted by Pew Charitable research also indicate that the payday loans in the U.S. are taken mostly for subsistence or recurrent spending as opposed to funding emergency cash needs. The interest rates charged on U.S. payday loans also remains higher than other alternative short term loans. The difference in regulation per jurisdiction is to blame for misinformation as well as ongoing unfair lending practices in the industry.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Top 6 Signs You Should Choose A Payday Loan

Top 6 Signs You Should Choose A Payday Loan

There are unique circumstances that warrant you choosing a payday loan over any other types of loans. In fact, payday loans are ideal for almost all kinds of situations that warrant people to take out short term loans. If you’re wondering if you should take out a payday loan or not, look no further. Here are the top 5 signs you need a payday loan.

1. You are tired of high-interest debt

If you’re looking for affordable short-term debt, that’s a clear sign that you need a payday loan. Personal loan and credit card debt are very expensive compared to payday loans. The FCA highly regulates the payday loan sector in the UK. There are interest caps that ensure payday loan borrowers never pay more than they have to. Furthermore, with interest rates caped at 0.8% by the FCA and there being many affordable payday loan lenders, there is no reason why you should continue using other high-interest debt.

2. You have emergency expenses to settle

Payday loans are the best sources of short-term cash for catering for emergency cash needs. Emergency expenses range from unexpected bills to an expensive car repair. Payday loans can also come in handy when you have emergency home repairs i.e. a damaged roof after a storm. When faced by a crisis, there are very few places you can turn to for quick cash. Payday loans are the most favourable sources of emergency cash because they are readily available. You can get a payday loan instantly (a few minutes after your application is approved). It takes longer to borrow personal loans or obtain a credit card or even borrow from friends. If you have an emergency expense that can’t wait, this is a sure sign that you need a payday loan.

3. When you want to enjoy unmatched borrowing convenience

Online payday loans are the most convenient types of short term loans available today. Unlike other types of loans available today, payday loans can be applied for and received 100% online. You just need to fill in a simple online application form and submit it. The best payday loan lenders in the UK process loan applications within a few minutes. If your application is successful, your money is wired to your bank account instantly. You can also make enquiries online. Payday loans offer unmatched convenience. You don’t need to waste any time or effort visiting a bank. Everything can be done online including managing your loan. If you want to enjoy unmatched borrowing convenience, this is another sure sign you need a payday loan as opposed to any other types of short term loans.

4. When you want to boost your credit score

Payday loans are the best types of loans to use to boost your credit score. The loans are readily available, easy to get and manage. Payday loans are also affordable provided you choose a reputable lender. The loans are also available to individuals with bad credit. Unlike other loans, you won’t be overcharged because you have a bad credit score. Taking a payday loan is a great way of boosting your credit score as long as you meet your repayment obligations. Personal loans have a tedious application process. They also tend to be expensive. This makes them less attractive if your sole purpose of taking out a loan is to boost credit.

5. You want variety/unmatched comparison

Shopping for loans traditionally is very limiting. If you are fed up of being confined to a few lenders, this is a sure sign that you need to consider using a payday loan broker to obtain a short term loan. There are many payday loan lenders in the UK most of whom offer online payday loans. As a result, by using a payday loan broker you only need to fill in one application to apply to most payday lenders in the UK.

Summary

Payday loans offer very many benefits over typical short term loans. If you want to enjoy unmatched convenience, variety, comparison and low-interest rate charges, this is a sure sign that you need a payday loan over conventional short-term loans. You also need a payday loan when you want to take on debt for the sole purpose of boosting your credit. Payday loans also need to be your #1 source of cash when you are faced with emergency expenses because you can get a payday loan within minutes.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Are Short Term Loans Risky? What You Need To Know

Are Short Term Loans Risky? What You Need To Know

Short terms loans such as payday loans are regarded as risky by many, however, is this really the case? If you’re looking to take out a short-term loan, but you want to know what you’re getting yourself into first, look no further. Here’s what you need to know and do to minimize the risks

Possible risks

Like any other kinds of loans, short term loans such as payday loans have risks. The most common include;

1. Misuse: Short-term loans are prone to misuse more than any other types of loans. As a result, there is always a risk that you won’t use any short term loan you take responsibly. You can do away with this risk by being a responsible borrower. You should borrow short term loans like payday loans when you have pressing needs only i.e. when you have emergency cash needs.

2. Repayment risks: Due to the short term nature of loans such as payday loans, there are higher risks of failing to meet repayment obligations as stipulated in the terms. Typically, payday loans are supposed to be paid off in full using the next paycheck. If you don’t borrow more money that you can repay comfortably, there is a high risk of having difficulties repaying the loan in full. The best way of avoiding this repayment risks is to always make sure you can repay the loan amount in full without difficulties during your next payday.

3. High-cost risks: Short term loans also tend to be more expensive than regular loans, so there is a high likelihood of being overcharged especially when you don’t take the time to borrow from reputable lenders. Payday loans are good examples of expensive short term loans if you borrow without doing your homework. There are very many unscrupulous payday loan lenders in the UK who overcharge their customers by using confusing terms and conditions. To avoid this, you need to borrow from reputable UK payday loan lenders only like Swiftmoney.

4. Habitual borrowing risks: Short term loans are also known to cause habitual borrowing i.e. borrowing when you don’t need to. You should never get a short term loan simply because it is available to you otherwise you stand to plunge yourself into a never-ending debt cycle. Furthermore, the loan might not be available to you later when you really need it. It is worth noting that failing to repay any loan damages your reputation as well as your credit rating.

5. Scams: There are also more scams associated with short term loans than there are scams associated with long-term loans. The popularity of short term loans like payday loans has attracted a lot of unscrupulous lenders out to exploit lenders. Some even pose as lenders only to steal the identity of their clients. The importance of dealing with renowned payday loan lender or broker can’t, therefore, be overemphasised. In fact, dealing with a renowned payday loan broker like Swift Money can reduce most risks associated with payday loan today.

Verdict: Are short-term loans risky?

Short term loans can be very risky if you are dealing with a bad lender. When you choose a good lender, you get rid of most of the risks associated with short-term loans. First and foremost, there’s need to worry about scams if you are dealing with a registered lender with all the relevant FCA authorization. You also don’t need to worry about paying a high-interest rate or paying more in fees because of hidden terms and conditions.

It’s also possible to reduce the risks associated with short term loans by being a responsible borrower. If you borrow a payday loan for emergency reasons only, there should be no cause for concern. A responsible borrower also uses his/her loan for the intended purpose and repays the loan as agreed. Being a responsible borrower eliminates risks of misusing your loan, having repayment problems as well as becoming a habitual borrower.

In essence, short term loans have risks. However, the risks can be eliminated by choosing a lender wisely as well as practicing responsible borrowing behaviour.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Recovering Financially After Going On Holiday

Recovering Financially After Going On Holiday

The holiday season is over. You have plenty of memories as well as a huge debt to clear because you possibly got carried away and overused your credit card. You may also have taken out a payday loan or any other kind of short term loan to fund unexpected holiday expenses. How do you recover financially?

Start by lowering your spending (save more)

The most natural place to start when you want to take charge of your finances is your spending. You must make some sacrifices to repay your payday loan, credit card debt among other types of loans you may have taken during the holiday. Luckily, there is always something you can cut back on to get that much-needed money to pay your loans as fast as possible. For instance, you can stop eating out, paying for entertainment, using your personal car, etc. Pursue every avenue available to reduce your expenses as much as possible. Save more and recover financially as fast as possible.

Pay your most expensive debt first

If you have loans to pay after a holiday, you need to sit down and determine which debt is the most expensive to pay and make plans to repay such debt first. Expensive debt can take a huge toll on your finances if you don’t repay immediately. To be able to recover faster at the lowest cost possible, pay expensive debt first.

Declutter your house

This is another great way of getting money to pay off any debts that you may have accumulated over the holiday. Decluttering can also give you some much-needed cash to cater for New Year expenses that you may have overlooked during the holidays. There is always something you don’t need in your house that you can sell. Luckily, there are also online platforms i.e. eBay and Craigslist that allow you to sell households among other items online easily.

Find an extra source of income

You can also look for a job to recover financially after a holiday. There are plenty of jobs you can do online to supplement your income. You just need to find a job that is in line with your interests to make some extra money and enjoy the process while at it. The internet is full of money making opportunities. You just need to take time and search for what works for you. A typical (offline) job is also great if you can find one.

Shop online exclusively

Besides cutting your spending, you need to look for other avenues of saving money. Shopping online is a great way to save money today. The internet has the best deals on anything you can think off. Furthermore, there is nothing you can’t find and buy online today. You can save money by taking advantage of online discounts. You also stand to save on convenience. When you shop for things online, you don’t have to waste time traveling. Most online stores also offer free shipping which translates to more savings.

Open a savings account

To avoid suffering financial distress ever again while on holiday, you need to set up a savings account immediately. This tip will help you avoid borrowing when you go for your next holiday. Although this tip won’t give you quick financial gratification, the account will help you avoid getting into a similar financial situation in the future.

Summary

It is very easy to overspend during the holiday season. If you face financial constraints after a holiday, it’s time to take the necessary measures. Focus on getting more money by saving, selling what you don’t need or finding a job and repaying all your debt as fast as possible to be able to recover in record time. You can also take out a payday loan if you are in dire need of money until your next payday. Lastly, make sure you open a holiday savings account to ensure you don’t find yourself in the same position again.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
The Process Of Taking Online Payday Loans Explained

The Process Of Taking Online Payday Loans Explained

As the name suggests, online payday loans are payday loans which are applied for and taken online. Some lenders even offer online loan management. If you’ve ever wondered how all this works, look no further. Most online loan applications are the same. Everything takes place online from the application process to loan management. This makes online payday loans the most convenient types of short term loans today.

Application

All online payday loan lenders have online application pages where borrowers complete application forms. The best lenders have online application forms that are straight forward/easy to understand. Such lenders require basic information that is easy to obtain so you shouldn’t expect a complicated application process if you choose to apply with a reputable online payday loan broker like Swift Money.

A typical online loan application requires personal and financial information like;

• Your full names
• Date of birth
• Address
• City/Location
• Postcode
• Email
• Mobile phone number
• Loan amount
• UK bank account details
• If you have considered bankruptcy etc.

You may also need to consent to a disclosure document, state the purpose of the loan, state your marital status, source of income or employment details such as your employment status, monthly income, length of employment, name of employer, work phone number, next pay date, among other information like existing loans, other expenses etc.

Processing

Online payday loans processing takes place faster than typical loan processing. It may take a few minutes to a few hours depending on the lender you choose among other variables i.e. the number of pending applications. If you have filled in everything accurately and selected a lender that caters to the needs of borrowers like yourself, it shouldn’t take long before you receive an email confirming that your loan application has been approved.
Reputable lenders offer no obligation online loans with very high approval rates so you shouldn’t worry if you meet the basic criteria for application.

The confirmation email you receive should come with a loan agreement that is automatically generated once an application is approved. You should take your time and read the loan agreement to make sure it matches your expectations. If you’re happy with the loan agreement, you can proceed and finalise the application process by signing the application electronically. Reputable online loan lenders have user-friendly loan online loan application tools that enable you to do everything online so you shouldn’t worry about finalising your application.

Receiving payment

Once you have finalised your application, it takes a few minutes for you to get your money. If you filled your bank account details accurately, you shouldn’t expect any delays. Upon approval, Swift Money sends money to your bank account within 10 minutes. It can take less time. The best lenders offer options for faster payment to borrowers who don’t have the luxury of time. Charges may however apply. It’s important to note that payments may take some time to be available for withdrawal depending on your bank. It is advisable to choose a bank which processes payments fast since online loans are short term loans taken to cater for emergencies.

Paying back online payday loans

Some payday lenders offer automatic loan repayment options whereby the loan amount or repayment amount is automatically deducted during the next payday. It is up to you to choose the repayment option that is most convenient for you. If you prefer sending the payment yourself, well and good. The electronic repayment option is, however, the best if you don’t want to forget and miss a repayment and attract charges as well as damage your credit score.

Loan management

Some lenders may also have loan management tools that help you manage your loan online i.e. calculate your remaining balance, interest, modify repayment patterns, etc. Such tools are useful for online loans that require more than one repayment.

Summary

Taking online payday loans is easy if you are dealing with a reputable lender with a user-friendly and secure online platform. Reputable lenders also process applications and deposit funds to your account fast. The process of taking online payday loans is similar to that of taking conventional loans. The only difference is everything is done online thus it is more convenient and fast.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Payday Loans vs. Overdrafts, Pawnbrokers and Loan Sharks

Payday Loans vs. Overdrafts, Pawnbrokers and Loan Sharks

Overview

There is a reason why payday loans are the most popular forms of short-term loans in the UK. The loans have very many benefits over competing sources of short-term cash like overdrafts, pawnbrokers and loan sharks.

Definition of overdrafts, pawnbrokers and loan sharks

· Overdrafts are short-term sources of cash provided to bank account holders by banks. Overdrafts reflect as deficits in bank accounts. They allow account holders to overdraw money.

· Pawnbrokers are persons who lend money at an interest based on the value of the article pawned.

· Loan sharks are lenders who charge high interest rates usually under illegal conditions
Below is a detailed discussion highlighting the top benefits of payday loans over pawnbrokers, overdrafts and loan sharks.

1. Payday loans are extremely easy to get: Payday loans have very little restrictions. You don’t need any security as is the case when getting short term loans from loan sharks and pawnbrokers. Also, you don’t require any credit history with any bank to get a payday loan as is the case with overdrafts. All you need is a job and a bank account. Also, payday loan lenders don’t require a credit score or history as is the case with banks and overdrafts. Payday loans are easily accessible to just about anyone you can think of who has a job or steady income.

2. Flexible borrowing limits: Payday loans are also better sources of short-term cash compared to overdrafts and loans from pawnbrokers and loan sharks because you can borrow as little or as much as you want. It is possible to borrow a few pounds to a few thousand pounds from any payday loan lender provided you are capable of repaying. Pawnbrokers and loan sharks limit your loan amount to the security you provide making it impossible to borrow if you don’t have valuable items like jewelry, cars, etc. Banks also limit overdraft limits depending on factors like cash flow.

3. Online application Payday loans in the UK are acquired online. Although there are some traditional payday loan lenders, most people take payday loans online which is fast, easy and convenient. Loans acquired from pawnbrokers and loan sharks must be acquired physically through tedious and time-consuming processes.

4. Fast processing: It is possible to get a payday loan within a few minutes after your loan application has been approved. Overdrafts take more time to be approved especially when they are being taken for the first time. The same applies to loans from loan sharks and pawnbrokers. The security must be assessed before a loan can be disbursed. The process of getting a loan from a pawnbroker or loan shark also involves lengthy negotiations.

5. Payday loans are highly regulated: The FCA regulates the payday loan industry in the UK. There is very little to no regulation governing pawnbrokers and loan sharks. In fact, most loan sharks and pawnbrokers operate illegally. Borrowers are usually exploited and coerced for repayments. Banks also charge high interests for overdraft facilities. On the other hand, the FCA limits the maximum amount of interest payday loan borrowers are supposed to pay. You will never pay more than you borrow in interest rate payments and fees if you borrow from a payday loan lender. The FCA has also put a cap on the interest rate charges at 0.8 percent per day. Payday loans are therefore the best sources of short term cash for borrowers in dire need of cash.

Summary

In case you need a fast, reliable and safe source of short term loans, payday loans are your best option over bank overdrafts or other sources of short-term cash like borrowing from pawnbrokers or loan sharks. Payday loans are easy to get, flexible, highly regulated, automated and cheaper. Competing sources of short term loans don’t offer such benefits.

Swiftmoney is one of the best payday loan lenders in the UK. We offer the best APR, repayment terms, most flexible borrowing limits.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Top UK Payday Loan Companies in the UK

Top UK Payday Loan Companies in the UK

There are hundreds of payday loan lenders in the UK, however, very few standout. We’re going to attempt ranking the best lenders based on factors such as Rep APR, borrowing limits, early repayment, FCA approval among other factors.

1. Swift Money (APR: 1255.66%)

Swift Money tops the list of top payday loan companies in the UK based on many factors the most notable being APR (1255.66%) which is one of the lowest (if not the lowest) in the industry. Swift Money also boasts of having one of the best approval rates (97.5%), best payday loan approval time (have money in your account in a record 10 minutes), unmatched borrowing flexibility (borrow from as little as £50 to £1,000+), 24/7 access (apply for a payday loan anytime), efficient services (over 400,000 loan applications processed since 2011) and no restrictions.

Swift Money also has one of the most secure payday loan websites in the UK (Data protection: ZA069965, Valid certificate, Secure TLS connection and guaranteed resources security). Swift Money is also fully authorised and regulated by the FCA (Registration number: 738569). Swift Money Ltd. Is a fully registered company England and Wales. The company clearly stands out in all aspects.

2. Mr Lender (APR: 1,248.5%)

Mr Lender is a UK payday loan lender market leader in regards to reviews. The company has over 15,000 5-star customer reviews. The company is currently the best short term loan provider in the UK according to the 2016 Consumer Credit Awards. Reviews aside, Mr Lender offers flexible borrowing limits (£200 to £1000 as well as flexible repayment terms (repay your short term loan for up to 6 months). Other notable advantages include; the company doesn’t charge any upfront or no late fees. The company is also authorised and regulated by the FCA (Reference no: 673310).

3. Lending Stream (APR: 1272.0%)

Lending stream stands out for having good limits (borrow up to £1500), flexible payments (up to 6 months), great reviews (Lending Stream has 4.8 stars rating out of 5 based on 5,460 reviews). Lending Stream’s customers praise the lender for having fast, efficient and affordable loans. The company also stands out for its impressive processing speeds. Lending Stream understands that people need short term loans as fast as possible which is why funds are deposited in customers’ bank accounts in approximately 15 minutes after applications have been approved. Lending Stream LLC is also a fully licensed company with FCA authorisation (Registration number: 689378). The company also takes security and privacy very seriously (Data protection registration: No; Z2752028).

4. Quickquid (APR: 1294.1%)

Quickquid is one of the most trusted online lenders in the UK. The company has served over 1 million British citizens to date helping them take care of unexpected expenses comfortably. The company has a maximum credit limit of £1,000 for new clients and £1,500 for existing clients. Most loans are processed within 30 minutes. The company is fully authorised and regulated by the FCA (Registration number: 673738). Quickquid also observes the highest levels of data security according to the Data Protection Act of 1998. The firm has an APR of 1294.1%.

5. Wageday Advance (APR: 1294.1%)

Wageday Advance is an FCA-authorised payday loan lender (Reference no: 672831) renowned for offering flexible short term loans ranging from £80 to £1,000 and featuring repayments suitable to borrowers (up to 6 months) with no default charges and no early repayment charges. Wageday Advance payday loans are approved and dispersed fast (within an hour of application) and the company has a team of dedicated customer support staff ready to assist you in any way. Wageday Advance also takes data protection very seriously (Reg No: Z1687106).

6. Sunny (APR: 1,299.0%)

Sunny stand out mostly because of lending flexibility. Clients can borrow from £100 to £2,500 even more (for existing clients). The company offers some of the most flexible lending limits in the industry. Sunny loans are also fast (processed within 15 minutes) and borrowers enjoy flexible repayments, no application, admin and late fees. Borrowers also have the freedom to repay their loan early without being charged anything. Sunny loans also have excellent reviews (9/10 after 1,307 reviews on Trustpilot). Sunny loans also come with resources to help clients financially i.e. money management guides. The company operates under Elevate Credit International Limited, a company which is fully registered (Company no: 05041905).

7. Wonga (APR: 1,509%)

Wonga is UK’s largest payday loan lender by market share (the company controls 30% of UK’s payday loan industry. The company, however, charges one of the highest APRs. New customers also have lower borrowing limits £50 to £400 however, existing customers can borrow up to £1,000. Wonga payday loans stand out in many other aspects i.e. fast approval (approximately 5 minutes), automated services and no transfer fees. Wonga is also fully authorised by the FCA (FCA Registration number: 671454 under trading name WDFC UK Ltd).
The lender is definitely one of the best although there are better alternatives in this list like Swift Money which has longer loan durations i.e. up to 6 months instead of Wonga’s 34-day loan duration limit. Swift Money also offers installment payments. Wonga doesn’t.

 

8. Safety Net Credit (Variable APR)

Safety Net Credit makes it to this list for being one of the few UK payday loan companies that offers payday loans with no minimum/maximum repayment terms. This makes Safety Net Credit’s short term loans unmatched in terms of repayment flexibility. Furthermore, the company has great online loan management tools that allow customers to apply for loans seamlessly and monitor their accounts, access their credit worthiness and so much more at any given time. Safety Net Credit also has flexible borrowing limits ranging £100 – £500 and increase with time-based on factors like a customer’s affordability, income, credit history, etc. The company is also authorised and regulated by the FCA (Reference no: 715525). Due to the companies repayment terms, the APR ranges but stays within limits set by the FCA.

9. Ferratum (Variable APR)

Ferratum also qualifies as one of the top UK payday loan companies. The company has a global presence (provides short term loans in 22 countries globally) and one of the fastest online application platforms. Customers can complete applications in a record 2 minutes. The company also has flexible borrowing limits for all its short term loans (i.e. £50 to £1000 for new customers, high limits for existing customers). Customers can also repay their loans in 1 to 6 months with no early repayment penalties. Ferratum is fully authorised and regulated by the FCA (Reference no: 672537).

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
How to Calculate the Real Cost of Your Payday Loan

How to Calculate the Real Cost of Your Payday Loan

Overview

The FCA recently put caps on the maximum interest rate chargeable per day for payday loans at 0.8%. The FCA also put caps on the maximum amount of fees and charges at 100% meaning that you can never pay more than you borrowed in interest and fees. Although this puts an end to unfair lending practices that were common in the past, this doesn’t mean that every payday loan you come across going forward will be cheap. Far from it! There are still payday loan lenders that are more expensive than others so, here’s how to determine the real cost of a payday loan

Understand the structure of payday loans first

To be able to find out the real cost of a payday loan, you need to understand how payday loans are structured. Payday loans are short term loans that are meant to be paid off during the next pay day i.e. in a month or less. As a result, they feature shorter terms and lower loan amounts than typical loans. They, however, have more fees than typical loans.

Interest

The interest charges usually denoted as APR look at the interest that a borrower would pay in a year divided by the principal balance. For instance, if you are borrowing $1000 and you are supposed to pay $10 in interest per month for a year (12 months), the APR for the loan will be 12% i.e. 120 divided by 1000. The most important thing to note is payday loan lenders calculate interest daily even though they denote it as APR. Interest, therefore, add up faster than typical rates so do independent calculations.

The total amount of interest you should expect to pay = Annual interest rate/365 days x term of the loan in days x loan amount.

It’s also worth noting that the payday loan interest you pay depends on the loan amount as well as the term of the loan. You tend to pay a higher interest rate if you borrow a larger amount and stay with the loan longer than usual (i.e. more than a month) because interest is charged daily.

Fees 

Since payday loans are usually offered over short time periods, payday lenders can’t make as much money unless the loan is repaid over a long period. As a result, payday lenders focus on making money on fees.

Different lenders may have different fees . However, you should look out for establishment fees and monthly fees among other fees that are a fraction of the principal amount borrowed since such fees tend to be the most costly.

You also need to consider other fees like default and fees. Such fees are usually charged when you miss a payment, so it’s important to know how much you stand to pay in the worst case scenario. Default fees are charged when you default on your payday loan. The fees can include an amount that is continuously charged until you are able to repay your loan. There is, however, a cap set by the FCA.

The total amount of fees and interest charges you pay on your payday loan in the UK can never exceed the loan amount you received. This cap is effective for small amounts. If you have borrowed large amounts, you will definitely pay a lot in interest and default fees. This explains why you need to know exactly what you stand to pay will charge you.
Enforcement expenses are fees incurred by a lender as they pursue you to pay your defaulted loan. The fees may include things like lawyer/court expenses.
Some lenders may also have an early repayment fee to discourage payday loan borrowers from repaying their loans too early i.e. after a day. To get the real cost of your payday loan, you must add up all these fees.

The real cost of your payday loan equals the interest charges plus all the fees applicable. Most borrowers usually pay attention to the interest rate figure and assume charges can’t be much. This shouldn’t be the case. The only way to find out the actual cost of your loan is to add up all the fees.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
Types of Payday Loans Available in the UK

Types of Payday Loans Available in the UK

There are very many types of payday loans in the UK most of which are classified by their features, how you get them as well as factors such as who is issuing them. Below is a brief discussion of the most common types of payday loans in the UK. 

Wonga loans

Wonga loans are payday loans issued by UK payday loan giant Wonga which enjoys a 30 to 40% market share of the entire UK payday loan industry. Wonga payday loans are among the oldest in the UK having been introduced in 2006. The payday loans are popular in the UK although they have spread to other countries. Wonga loans are available in £50 to £400 amounts. The loans are disbursed 5 minutes after approval. The loans come with a representative APR of 1,509%.

Online payday loans

As the name suggests, online payday loans are loans which can be applied and issued online. These types of payday loans are the most convenient because you don’t have to visit a payday loan lender physically to get them. Everything is done online from application to processing and disbursement of funds. All you need to do is go to the lender’s website and follow their instructions. The convenience of online payday loans has made them very popular today. Borrowers are however advised to deal with authorised online payday loan lenders only to avoid being scammed. You should choose a reputable lender like Swiftmoney with FCA authorisation and a secure website.

Bad credit payday loans

As the name suggests, these are payday loans offered to individuals with bad credit. Although most payday lenders in the UK lend to anyone provided you are employed or have a regular income, some lenders don’t advance loans to individuals with bad credit. Bad credit payday loans cater for such individuals. You don’t require good credit to get a bad credit payday loan. In fact, lenders don’t ask you for your credit score or rating. You just need to fill in your application correctly to qualify. The loans may, however, come with higher interest rates than usual because of obvious reasons i.e. individuals with bad credit are high-risk borrowers. It is, however, possible to get cheap bad credit payday loans.Swiftmoney offers bad credit payday loans at great rates. 

Instant payday loans

These types of payday loans are offered instantly. They may be offered online or offline depending on the lender. Instant payday loans appeal to borrowers who want to borrow as soon as possible. If you don’t any time to spare, an instant payday loan will be great for you. The main difference between this type of payday loans and others is the time it takes to process applications and disburse payments. Instant payday loans offered online are the fastest types available today because borrowers apply online and receive money within minutes. 

1-hour payday loans

Unlike instant payday loans, you have to wait for an hour to receive your loan amount. If you have some time to spare, you can apply for a 1-hour payday loan instead of an instant payday loan. You stand to enjoy some interest savings when you reduce the urgency to receive your loan amount. 

Same day payday loans

These types of payday loans are issued the same day. If you are in a hurry but you can afford to wait a few hours to get your payday loan, same day payday loans will be ideal for you. A typical same day payday loan takes a day to be processed and approved. Money is also sent the same day. The loans come at a slightly lower interest rate compared to instant payday loans because they aren’t as urgent. 

No fax payday loans

No fax payday loans are payday loans that don’t require you to fax or mail anything to the lender. Most online payday loans are no fax payday loans. These types of payday loans offer unmatched convenience by handling everything online. 

Summary

The above information summarises the main types of payday loans available in the UK. After going through the above information, you shouldn’t have a problem selecting a payday loan that serves you perfectly. 
Swiftmoney offers the best types of payday loans in the UK in regards to interest, processing speed and online application processes.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.
How do you decide how much you should borrow? 

How do you decide how much you should borrow? 

Whether you are borrowing a short term loan or a long-term loan, the criteria for deciding how much you should borrow is almost the same. It’s important to follow the criteria lenders use since they ultimately decide how much you can borrow. One of the most important factors lenders consider (and you should consider too) is affordability. To calculate affordability, you need to consider your income and factors such as debt expenses and the size of your down payment (if applicable). Below is a discussion on how to decide the amount of money you should borrow.
What is your debt-to-income ratio?

Your debt-to-income ratio is the percentage of your income you spend on repaying debts like credit card payments, an auto loan, student loan, mortgage, etc. Your debt-to-income ratio shows how much money you spend monthly repaying your debts. If you earn £6,000 every month and pay debts amounting to £2,000 every month, your debt-to-income ratio is 0.33 (33%). 

Lenders have different requirements depending on the type of loan you want. For long term loans, most lenders require all your debt commitments to be 0.36 or 36% or less. The ratio can, however, vary from one lender to another depending on type of loan, term of the loan etc. Short term loans like payday loans have more flexible debt-to-income ratio requirements because they involve small amounts paid over a short period. 

If you earn £6,000 for instance and you have existing debt commitments amounting to £1,000, you shouldn’t borrow more than £1,160 so that your debt-to-income ratio is 36% or less. In this example, your total debt will be £2,160 against an income of £6,000 which is within the recommended (0.36 or 36%) threshold. It is also important to note that you don’t have to borrow more than you need. The debt-to-income ratio helps borrowers determine the most affordable loan amount.

What is your credit history?

Lenders also consider a borrower’s credit history when deciding what they should lend their customers. If you have a good credit history, you will be able to borrow more than usual at a lower interest rate. This shouldn’t, however, be taken to mean that you should borrow more than you need. A good credit history will simply give you leeway if you want to borrow more. If you can afford a bigger loan comfortably, you can use your good credit history to your advantage otherwise, don’t take a loan you can’t afford even if your credit history is good (700 or higher).
 
How much do you need?

Your debt-to-income ratio should give you a rough idea of how much money you can afford to borrow comfortably. Your needs should help you come up with an exact figure. Using our above example, if you can borrow £1,160 comfortably, but you need a £500 loan, don’t borrow more than what you need. Loans especially short term loans like payday loans should be used to cater for unavoidable expenses, not luxuries. Unless you are planning on investing the additional amount, stick to what you need to avoid servicing unnecessary expenditure.

Do you have a down payment?

You should consider down payment when you are taking long term loans like a mortgage. A large down payment allows you to borrow more and vice versa. It’s always better to pay more substantial down payment because you also reduce your repayments and get better interest rate deals compared to someone who pays the minimum down payment. If you don’t have a large down payment, borrow modestly because you have little leverage to negotiate better terms.

Consider lifestyle factors

Your lifestyle should also come into consideration when you are deciding how much you should borrow. Although the debt-to-income ratio is a perfect place to start, you need to consider how the new loan will affect your lifestyle. For instance, when taking up a mortgage to buy a house in a city with poor public transport, you might have to factor in additional transport costs. You might also need to spend additional money moving your children to nearby schools. Lenders don’t account for such factors, so it’s important to consider them yourself. Considering lifestyle factors helps you determine with certainty how much you should borrow and if it is affordable.

There are a lot of factors you need to consider when you are deciding how much you should borrow. The most important factors revolve around affordability. You should never take up a loan you can’t afford to pay comfortably. Luckily, the above factors are adequate to help you do just that.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.