Why are we better than a payday loan?
Payday loans can be dangerous. We believe the lack of flexibility is detrimental to customers. Having to pay back the entirety of their loan in one month can strain finances to breaking point: Borrowers have to choose between paying their rent or defaulting on their loan. Money Supermarket outlines the dangers of payday loans and the main problem is they’re inflexible.
We offer a flexible finance plan, which hugely decreases the burden on your pay packet.
We can spread it from 3 to 12 months, which gives you the freedom to fix your finances if you have to.
Payday loans are often given out without sufficient financial history. We do a comprehensive credit check and feasibility testing. This does not mean that those with a poor financial history are ineligible for our loan. It just means that we do extra checks on the feasibility and may reduce the amount lent.
Furthermore, payday loans encourage you to borrow more and more. We cap our loans at £1000. Therefore the amount lent out is never excessive and can easily be recovered.
We also use your information to test the suitability of the amount at our rates. Because our rates are representative, the majority of our customers will receive the same rate. Therefore we lend out limited amounts to ensure our customers do not find themselves encouraged into ballooning debts.
We do not lend out to customers who are currently using other payday loan services. Every time you apply for credit, payday loan or otherwise, it appears on your credit report. We use this to determine if you are self-sufficient. If you require the use of a payday loan each month, then we don’t think you’ll be a suitable customer.
Payday loans can often be a negative mark on your credit file. Lenders believe that it makes you look desperate and will often refuse to lend you money. Our loans however are not classified as payday loans, they won’t appear as a negative indicator like a loan from the MoneyShop or other payday lender would.
Our company is established on ethical, responsible principles. We respect our customers and we will never lend them more than they can afford to pay back. Our feasibility tests ensure this too.