Tag Archives: short term loans

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.
Borrowing for a holiday: Is It A Good Idea?

Borrowing for a holiday: Is It A Good Idea?

Let’s face it! It doesn’t sound too smart taking out a loan to finance a holiday right? Well, yes but there’s a twist to it. You’ve probably heard that it’s a bad idea to borrow to finance a liability. Well, a holiday can be an asset or a liability depending on who you ask. So, should you really borrow to pay for a holiday? If you want to take out a personal loan or any other kind of short term or long term loan to finance your holiday, here’s what you need to know first.

1. There are situations that warrant borrowing for a holiday

First and foremost, it’s important to note that it’s not always a bad idea to take out a loan to finance a holiday. Having quality time during the holidays with your family is very important so there’s no problem borrowing some money especially if you can afford it. Furthermore, you don’t need to be broke to take out a loan. You may be taking out a loan because you don’t have access to your money at the moment. For instance, you may have some investments that you don’t want to liquidate because the returns aren’t favorable at the moment. In such a case, a loan is justified. The consequences of failing to spend quality time with your family is worse than having to borrow a small loan to fund your holiday expenses. If you can pay for the loan comfortably, go ahead.

2. You need to plan in advance (know how much you need to borrow)

When taking a loan to fund your holiday expenses, you need to plan in advance otherwise, you will end up having problems later. You should never take out a holiday loan before you determine the amount of money you need. Borrowing using estimates is a recipe for disaster. Planning in advance ensures you borrow exactly what you need which is a great way of controlling your expenditure. It doesn’t really matter if you are taking out a payday loan or personal loan to finance your holiday, you must know how much you need in advance.

3. Look for holiday loan offers

Retail stores aren’t the only businesses offering great deals during the holiday season so, if you have to borrow, make sure you are getting the best deal possible. Banks among other financial institutions offer great loan deals for the holidays. It’s therefore up to you to source for the perfect holiday loan deals. There are plenty of great holiday loan deals available currently in the UK. You just need to shop and choose the best deal for you.

4. Plan to spend wisely

Most people have problems on holidays because of overspending. It’s very easy to overspend during a holiday if you don’t have a budget/plan in place. This is precisely why many people end up taking more than one loan to fund holiday expenditures. To avoid taking in an extra loan and incurring unnecessary expenses, spend wisely. Avoid impulse buying at all costs. You should also capitalise off the numerous discounts offered during the holiday season. Always remember that there is life after the holidays. Have a budget and don’t get carried away!

5. Borrow to fund basic holiday celebrations

Sometimes you may feel the urge to borrow to fund an overseas trip. In such a case, it’s better to consider less expensive holiday celebrations unless you lack money temporarily. It’s never a good idea to borrow to fund a lavish holiday especially if you will have trouble repaying the loan.

Summary

The holiday season has many surprises. You may not get your finances in order in time because of many reasons i.e. late/delayed payments etc. In such instances, you may be forced to borrow to fund your holiday expenses. As long as you plan in advance, look for the best holiday loan offers and spend wisely, you shouldn’t have any problems repaying your loan after the holidays. Furthermore, there is much more to holidays than spending money. If you can stick to a loan amount that is manageable, then there is no problem with taking out a loan for a holiday.

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 Can You Use Technology To Save Money?

How Can You Use Technology To Save Money?

To be able to reduce your over-reliance on short term loans such as payday loans, you need to save enough money first. Fortunately, there are high-tech methods you can use to boost your saving efforts. You can save a lot of money using technology. Here’s what you need to do;

1. Shop online

You can save lots of money if you choose to do most or even all your shopping online. The internet is full of amazing shopping deals. There are very many online shops in the UK that offer discounts that are impossible to get offline. You can use discount coupons to get even better deals on anything you can think off from food to household appliances among other types of household goods. It is also possible to buy clothes online, cars and cosmetics, name it!

Deals aside, online shopping offers unmatched convenience which also attracts savings. When you do your shopping at the comfort of your home, you save on transport costs. You also save precious time which can be channeled to doing more important things. You also enjoy other saving benefits such as free shipping when you buy from most online stores.

2. Use budgeting apps

You can also use budgeting applications to help you in your saving efforts. There are very many free budgeting apps available today. You can install such apps in your Smartphone, tablet or laptop and use them to prepare a budget, track your spending, etc. Many people have problems saving because they find it hard preparing a budget and monitoring their expenditure. Budgeting apps do all the work for you.
All you need is to make a few inputs i.e. your income and expenditures to get budget suggestions. The apps let you know how much you should be saving depending on your income and expenses. You can also set saving goals to get suggestions on what you should do to achieve them. There are also budgeting apps that can be synced with your credit cards to track spending and alert you electronically when you start overspending. It all depends on your preferences. You just need to conduct a quick search online to get the perfect budgeting app for you.

3. Use VoIP services

You can avoid phone bills by using VoIP services such as Skype and Google Hangouts. VoIP services are online services which allow you to make calls via an internet connection. Most VoIP services are free. They are also better than regular phone calls since you get to see the person you are talking with live. As long as you have a Smartphone, there is absolutely no reason why you should be paying to call your friends and family members. Use these services and enjoy huge saving every month.

4. Use free online text messaging services

There are also many free text messaging services online you can use to send texts for free. In this time and age, you shouldn’t be paying for text messages as well. You can download apps such as Textfree and WhatsApp and use VoIP services on your mobile phone to enjoy free telecommunication services.

5. Entertain yourself at home with services such as Netflix

Many people spend a lot of money going to the theatres to watch movies. If that sounds like you, it is possible to save a lot of money by using services like Netflix. You could also choose services like Netflix as alternative entertainment instead of having to leave your house. For a few pounds monthly, you can rent as many movies as you like with Netflix and watch them all at the comfort of your living room. You can also stream TV shows, and films live with Netflix. There’s a lot more entertainment online. For instance, you can also play games online instead of having to indulge in expensive entertainment outdoors.

6. Hold meetings online

This is another excellent way of saving on travel/meeting costs today. You don’t have to travel to meet people personally today. You can do a video conference when holding meetings with people who are far away from you. Doing this can help you save thousands of pounds in travel costs especially if your job involves a lot of traveling.

Summary

Technology offers huge cost saving benefits. By implementing the above tips into your day-to-day life, you are bound to save a lot of money. Don’t spend any money unless its necessary. Shop online, use budgeting apps, VoIP services, free text services, online entertainment services and video conferencing and watch yourself save a significant amount of money monthly and use emergency loans like payday loans when they are absolutely necessary.

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.
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.
How to Run a Credit Check in the UK

How to Run a Credit Check in the UK

Overview

Although it’s not mandatory to perform a credit check in the UK or anywhere else, it’s a good idea to do so. Remember, a credit check reveals your credit score and credit history information that gives you indications of all the issues that are bound to affect your ability to access personal loans, payday loans, short term loans, mortgages, car loans etc. 

Getting started

The UK has 3 main credit reference agencies namely CallCredit, Equifax, and Experian. There are many other referencing agencies. It is, however, important to work with these three agencies because they are the most reputable. When you want to run a credit check, you should also consider the fact that they don’t all give the same score. It’s advisable to choose the agency that matches your lending needs perfectly i.e. an agency used by your preferred lender.

Requesting for a credit report

You can request for a copy of your credit report from any of the three main agencies in the UK. You can request online or offline (by post). UK citizens have the right to obtain their full credit report according to the Consumer Credit Act. The three main agencies are obligated to give UK citizens one free report a year. Citizens interested in getting their report more than once among other credit referencing services are required to pay a fee dictated by the credit reporting agency in question. Below is the information of the three main credit reference agencies in the UK to help you request for your credit report by post or online;

CallCredit

Website: http://www.callcredit.co.uk/, Phone: 0870 060 1414, Consumer Services Team, PO Box 491, Leeds, LS3 1WZ.

Equifax

Website: https://www.equifax.co.uk/, Phone: 0844 335 0550, Equifax Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US. 

Experian

Website: http://www.experian.co.uk/, Phone: 0800 013 88 88, Customer Support Centre, PO Box 9000, Nottingham, NG80 7WF.

Procedure

When running a credit check online, you will need to enter your details to run a credit check. Agencies usually require you to register with your personal information i.e. your names, date of birth, email address and phone number. You are also supposed to review and accept the terms and conditions of the credit reference agency in question, confirm the information you have filled in and then submit your request. You may also be required to provide other information i.e. you payment information if you want to pay for other credit reference services. Once you submit, you should be able to get your credit report immediately.

Reporting problems?

In case you encounter a problem running a credit check, you can always contact the agency. If your report has problems, you should report and request for amendments. It’s important to note that credit reference agencies get information from banks/lenders you have dealt with in the past, so any errors submitted by those institutions will reflect in your credit report. 
Credit report errors can range from something as small as a wrong address to fraudulent activities and defaulted payments you actually made. You can, however, report such problems and have them rectified so that your credit report shows the accurate credit score/information. Mistakes such as a default payment that you actually made affect your credit score negatively so it’s important to report any problems you find on your credit file. 

You can write to the credit reference agency or use the online mechanism the agency has for reporting errors. You should make sure you give a detailed explanation as well as evidence if you have any to make sure the error or errors are corrected. 

Credit report agency responses

Credit reference agencies have 28 days to act on concerns raised on credit reports. During this period, such concerns/errors are marked as ”disputed”. This is usually the case so that lenders who come across your file can be alerted not to rely on the specific piece of information that is disputed. In case the agency fails to amend your records, you have a right to send them a notice of correction which should be added to your credit file. The notice should not exceed 200 words. It should also explain why the piece of information in question is wrong including mitigating circumstances i.e. a good reason why you missed a loan payment such as a sudden bereavement.

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.
Short Term Loan Repayment Tips to Follow 

Short Term Loan Repayment Tips to Follow 

Short term loans like payday loans can easily plunge you into financial problems if you don’t plan to repay them in a smart way. In fact, one of the main reasons why short term loans become expensive is because of missing payments or defaulting. If you want to get the best out of your short term loan, late payments and defaults should be out of the question. Below are some of the most important tips to make sure you always meet your short term loan repayment obligations. 

Tip 1: Borrow an amount you can afford to repay comfortably

This tip applies to all types of loans let alone short term loans. You should never borrow more than you can comfortably afford to repay. A general rule of thumb is making sure you aren’t repaying your loan with more than 10% of your total net monthly income. Of course, this can vary if you have other sources of income however, you should be able to comfortably service your loan alongside your other monthly expenses otherwise, you stand to plunge yourself into financial problems. If you’re taking out a payday loan, make sure you can be able to pay off the loan comfortably during your next payday or as agreed to avoid late fees and unnecessary interest charges.

Tip 2: Plan to repay your loan in the shortest time possible to save on interest charges

Short term loans are very cheap sources of short-term cash if you purpose to pay them fast. The longer the term, the higher the total cost of the loan. Most people are tempted to take the maximum term because the monthly repayments are lower. Don’t fall for this trap. Lower monthly repayments make loans very expensive in the long term. You should choose the shortest term you can afford. If possible, you can pay the loan earlier than planned. It is, however, important to look out for early repayment fees in such instances. Some short term loan lenders charge early repayment fees to discourage borrowers from paying their loans faster than agreed. You are however free to pay your loan off as fast as you like without being charged if you choose a reputable lender.

Tip 3: Pay on time

If you can’t afford to pay off your loan faster than anticipated, make your repayments on time. Apart from interest charges, lenders make a lot of money on late fees. To keep your loan affordable, you should make sure you pay off your loan on time. You can place a standing order with your bank to ensure you never miss a payment. A standing order is great if you are a forgetful person. If you took out a loan you can afford to repay comfortably, there’s no reason why you should ever miss a payment. Apart from avoiding late fees and interest charges, paying on time will also ensure you keep your credit profile intact. 

Tip 4: Make some lifestyle changes

If taking out a short term loan is financially draining even when you choose a longer repayment term, you will need to make some lifestyle changes. You can’t afford to maintain the same lifestyle if you have loan repayment problems from the onset. You have to cut down on unnecessary spending like eating out, going to the movies, weekend getaways, etc. until you pay off your loan. In most cases, you don’t have to make drastic lifestyle changes since most people incur unnecessary expenditure unknowingly. You just need to track your money more keenly ensuring you spend on necessities only until you settle your loan. 

Tip 5: Keep looking for extra income

You should also be looking for extra sources of income to pay off your loan. If you have some free time, you can find a part-time job. The idea here is to make sure you pay off your loan as fast as possible, preferably in advance. You should also use any windfall gains you get i.e. a bonus, tax refunds, etc. to repay your loan instead of spending on luxuries. Ideally, you can’t afford to spend on luxuries if you have outstanding loans so, use windfall gains wisely. Paying an extra payment will reduce your interest payment as well as give you some breathing space. 

Summary

The above tips are bound to help you repay your short term loan fast, comfortably and cheaply. It’s important to note that short term loans become expensive when you miss a payment or choose the longest term. When you borrow what you can afford to pay, pay on time or plan to repay your loan in the shortest time possible, you shouldn’t have a problem repaying your loan in full stress-free. You should also consider making some lifestyle changes and looking for extra income to boost your current income. Provided you choose a good lender, you shouldn’t be worried about being charged for repaying your loan early.

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.