Payday loans as such are an expensive form of borrowing. This is mainly because of the risk involved with lending online, in real time and to the high risk "poor credit history" segment. Typical charges for payday loans available in UK range from 25-30% per loan term, which is typically monthly. There are, however, a few lenders who lend at rates lower than this. Of course, with many of such lenders the convenience is reduced. You are either required to fax in your documents or sign cheque guarantee cards. Compiled below is such a list.
Cheap payday loan alternatives
- 4 Cash Now: Though their normal finance charges with debit card are 25% per loan term, with cheque guarantee cards they charge a rate of 17.65%.
- E-payday: Their normal finance charge is 20% per loan term.
- FLM Loans: Their APR is 199%. This means for a 31 day loan of 300 pounds you will need to pay 328.7 pounds. That is less than what any other payday lender would charge. Wait!! there is a catch though. You need to have a guarantor with good credit ratings.
- Harvey and Thompson: They are not an internet based lender. They have stores all over the UK and require customers to come down to their stores. Some documents are required as well. Finance charges: 15%.
