Payday Lending
Payday loan companies must post their typical annual interest rate on loans. The APR is the annual percentage rate. The APR encourages comparison with traditional loans offered by high street banks. The typical APR on payday lending appears very high with rates charged by most payday loan companies being between 1000 and 2000%. You may see even higher rates charged by hundreds of new start up payday loan companies. The actual interest rate on a short term, one month payday loan might only be near 25% with the better payday loan companies. Hundreds of new lenders are offering loans, some online, others in brick and mortal retail locations across England, Scotland and Northern Ireland.
It is wise for borrowers to review the payday loan rates and lending terms specified by UK pay day loan companies. Consumers are reporting on the web, of loan rates being charged at much higher rates than posted. It's not clear whether this is true or not, however it's best to choose a pay day loan lender with a good reputation. Here’s a comparison chart of the latest, best payday loan company rates conducted on June 1, 2010. Information here was obtained from the respective lenders websites.
Payday Loan Company |
Loan Amount |
Total Repayable |
Loan Term |
Typical APR |
epayday.co.uk |
100 |
120 |
1 month |
781% |
quickquid.co.uk |
100 |
129.50 |
1 month |
2222% |
paydayexpress.co.uk |
100 |
125 |
1 month |
1286% |
paydayuk.co.uk |
80 |
100 |
1 month |
1737% |
paydaypower.co.uk |
80 |
100 |
1 month |
1737% |
wonga.com |
100 |
36.72 |
30 days |
2689% |
paydayloan.co.uk |
100 |
125 |
1 month |
1455% |
paydayfinancial.co.uk |
100 |
25 |
30 days |
1355% |
As you can see from the payday loan comparison chart, epayday is a favourable alternative to quick quid, payday express, paydayuk, paydaypower, wonga, paydayloan.co.uk or paydayfinancial and even the featured payday companies on moneysupermarket. Do not assume an honest and fair recommendation by any payday loan reviewer. All too often, these web reviewers are paid for their recommendations and they may receive a commission for new account referals or a percentage of revenues.
Payday loan interest
With epayday.co.uk, you can pay the interest and part of the balance on your payday cash loan - as much or as little as you can afford. This reduces next month’s interest charge. Alternatively, when you get paid, pay just the interest charge and the balance of the payday cash loan moves to the following month. You can do this as many times as you want. Or pay it all off in full - it’s up to you.
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Payday Loan Company Comparison. Which <a href="http://www.epayday.co.uk/payday-loan-companies.html">payday loan</a> companies provide the best rates? Compare epayday, quick quid, wonga, payday uk, payday express, payday financial and moneymarket UK.