overdrafts-vs-payday-loans

Overdrafts Are More Expensive Than Payday Loans

Payday loans have been heavily criticised in the media, charging representative APRs of anywhere between 1,000% to 6,000% before the FCA imposed a cap on these costs in 2015. This cap was placed to safeguard borrowers from being charged interest rates of over 0.8% a day. Whilst the payday loans sector have received much negative […]

struggling-business-CBILS

What Is a Business Interruption Loan?

Business Interruption Loans have recently been introduced by the UK government to help businesses struggling financially from coronavirus. These loans will be running from March through to September 2020, and can offer up to £5 million, interest-free for the initial 12 months of the loan. Many businesses, and individuals, have needed to borrow money to […]

A Guide to Borrowing from Family and Friends

Borrowing money from family and friends is actually the most common form of borrowing in the UK and typically occurs between parents and children, siblings, spouses and close friends. The main advantage of borrowing from loved ones is that it surpasses any credit checks and usually does not come with any interest or terms. Borrowing […]

How Many Payday Loans Are Taken Out Every Year?

More than 5.4 million high-cost short-term credit (HCSTC) loans were taken out for the year up to the 30th June 2018. Last year, the FCA published a report into the HCSTC lending market, which was based on data that was submitted by UK consumer credit firms. This was the first time the UK’s financial watchdog […]

What is included in a loans management software?

The majority of UK lenders use loan management software which allows them to manage the entire loan and customer process from start to finish – including the application, underwriting, payment and collection process. Lenders and brokers may have their own systems in-house or use a licensed product and pay a monthly management fee. With so […]

why-payday-loans

When Should You Use a Payday Loan and When Should You Not

Payday loans are a type of unsecured, short-term loan that should only be used in certain situations. This type of loan was originally developed to help those who were financially struggling and waiting for their next payday – helping to keep them on top of certain payments before receiving their next paycheque. Payday loans can […]

budgeting-loans

What are budgeting loans?

A budgeting loan helps people on low incomes to pay for an unexpected expense or essential items. This type of loan is only available to people who meet a certain criteria, which we discuss below. A budgeting loan is interest-free, making it a much cheaper payday loan alternative for those on low incomes.   What […]

payday-loans

What are the regulations for the payday loans industry in the UK?

The regulatory watchdog for the payday loans sector, the Financial Conduct Authority, implemented a wave of new regulation from 1st January 2015. In fact, it is estimated that the FCA’s new rules have saved payday loan borrowers approximately £150 million so far. Prior to 2014, the payday loans industry was  self-regulated and many companies were […]

mortgage-approval

Does a payday loan affect your chances of getting a mortgage?

No, a payday loan on file will not impact your ability to get a mortgage. It is a common concern that is raised amongst borrowers who fear that a payday loan on their credit record could be looked upon negatively when they want to apply for a mortgage at a later date. But it is […]

self-employed

What loans are available for the self-employed?

Applying for a loan is made trickier when you are self-employed. This is because one of the main things lenders will ask for from you is evidence of income in the form of payslips. As you are not employed by someone, you will not be able to provide these. In addition, the fluctuation of income […]