Online loans £50 To £2000
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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Significant Facts on UK Payday History
Do you know anything about the UK Payday History? If you are from the UK then it is important that you exactly understand the payday history of this country. Payday loans may seem relatively new, but they’ve existed in the United States for centuries, way before it was acknowledged in the UK. These short-term loans were used the same way they are today — to tide workers over until the next paycheck arrives. However, it wasn’t until the 1950s that American states started implementing stricter laws. Laws were different per state, with some of them completely banning payday loans. However, it didn’t stop these loans’ popularity. It eventually reached the UK in 1992. That’s how payday history here in the UK started.
How Payday History Started
According to the payday history, before the popular use of UK payday loans, the UK’s working class heavily relied on pawnbrokers. People would pledge jewellery and other valuables in exchange for a sum that would provide for them until salary time comes. Upon redeeming the item, they would pawn it again the following week. What about the UK Payday History? In 1992, the Money Shop opened in the UK; it was the first High Street store to offer payday loans. It wasn’t until 2006, however, that payday loans became extremely popular and became a common thing, and at the time, the industry was valued at 300 million pounds. When the potential profits became apparent, a lot of companies quickly joined the bandwagon.
Within a few years, the payday loan industry took off tremendously and by 2010 was valued billions. In fact, a study conducted by Consumer Finance in 2009 concluded that the total value of the payday loan industry had ballooned to 1.2 billion pounds. The years went by and a lot of Britons began recognizing how convenient payday loans were, especially during the recession wherein employment practices suddenly changed. Traditional lenders also implemented stricter laws and drew on tighter criteria, so it was really quick to see the benefits of these short-term loans. A lot of people also like the fact that these loans can be acquired online without having to walk into a brick-and-mortar store.
Payday Loans Make the News
The rapidly increasing industry took the media by storm, and as with most things that gained immediate popularity, payday loans received flak, too. Despite the benefits it has given to millions of Britons, the media reported stories of lenders abusing the system and emphasised heavily on the high-interest fees and hidden charges that come with these loans.
True enough, some borrowers were left in debt upon realizing, later on, they couldn’t really afford to take out a loan. There was a time that the UK media only focused on these stories, and since then, payday loans have been tainted. It was bad publicity, and while there are good lenders, there are also guilty ones with questionable work-ethic. Borrowers complained of debt-chasers harassing them personally or via phone calls. However, this bad rap did not stop people from taking out payday loans. In fact, the industry was valued at 3.7 billion pounds by 2013. This was the time when debt advisory organisations and charities started their campaign, including the Members of the Parliament. They couldn’t stop people from taking out such loans, and so reforms had to be implemented.
Payday Loans Under the FCA
According to the payday history, payday loans were regulated by the Office of Fair Trading (OFT). In 2014, the responsibility was handed over to the Financial Conduct Authority (FCA). Under the FCA, new restrictions have been implemented on lenders, particularly to those with high APR. The government of the UK believed that that the FCA will do a more efficient job in dealing with financial products and prevent any further abuse of short-term loan practices. In order to enjoy the many benefits of consumer credit, the FCA says consumers must understand the following basic tips so that spending won’t end up in a disaster:
- Don’t fall into temptations.
Indeed, with the limitless power of a credit card, you can purchase even the most expensive items inside a department store. But be mindful of having these kinds of transactions. Temptations can happen very often. If you don’t limit your expenses, you can end up being broke for months. Your salary would only go to the debts you are obligated to pay prior to your recent purchases.
- Limit your spending habits via credit cards.
Paying with cash is quite different when paying via credit cards. For cash, the cost of the item is obviously printed on its attached price tag. But for credit cards, there is an additional interest rate. This interest will be felt in many more purchases to come for the coming months. Though small at first, it can accumulate into higher amounts.
- Don’t settle for unrealistic lifestyles.
You may not notice it, but purchasing with the use of credit cards can lead you into living in unrealistic lifestyles. You may be purchasing items which are not quite important to your current lifestyle. It is best to start living inadequate standards, so that you may truly enjoy the higher standards of living in the future. As a financially-conscious consumer, one must know the consequences of overspending. With these helpful tips at hand, you can now enjoy your spending habits in a controlled and regulated manner.
Some Special Loans for Bad Credit Individuals
Loans can tremendously help you solve your financial shortcomings. Especially in times that you need money badly, they could really help you make ends meet. Based on the payday history, this kind of issue typically happens. Aside from they could help you pay your children’s tuition fees, house repairs for damaged properties due to calamities and medical bills; they could also help you pay your other debts which could help you move forward into reducing your creditors.
However, getting consecutive loans regularly could also create a bad record for you. Because of that, you should be mindful as well of your actions in loaning to avoid getting a poor credit score. Good to know, nowadays, a lot of companies have also become more lenient in giving out loans for bad credit individuals even for those who were already blacklisted. If you are in dire need and must specifically buy household stuff, you can still take advantage of such similar loans. Here are some of the things that you can purchase through credit using such lenient policies:
- Some companies let you purchase goods such as appliances, electronic gadgets, entertainment systems and furniture using such procedure.
- You can also try getting services advertised in such lenient companies’ or stores’ catalogues. However, sometimes purchasing is only limited to specific stores that offer such services.
The discipline you get when you are in such situation could also help you get through it to redeem yourself. Since you will be forced to purchase on needs than wants, you will also be able to finally solve your financial problems eventually. With that, you will also start avoiding buying on impulse that can be very convenient in time. Just be wary of such companies since of course, you will be paying the loans after some time. Get a loan that has reasonable interest rates that could also help you be out of debt in the end. If you can be a smart shopper and a smart loan payer everything would also become much better.
Credit Report Review
A credit report is a big help to many since it lets them monitor their credit standing and the money flow in their household. Also, it is quite easy to request and receive one’s credit report. You can easily log-in to a site to check it. One just has to fill up an application form and submit it to the site. But there are people who would see inaccuracies or wrong information in their credit report. So if you ever experience such an event, here’s a step-by-step guide on what you should do.
What You Can Do To Correct Inaccurate Information:
-First, contact your consumer reporting company. You can tell them by writing them about the problem and list the wrong information. The consumer company will now investigate the items in question within a month’s time. They’ll contact the information provider about the problem. Once the information is verified, the information provider has to notify all the consumer reporting companies of the changes.
-Or you can tell your information provider or creditor of the incorrect information in writing. It will then give a notice of dispute on consumer reporting companies. Once they verified that the information is indeed wrong, they’ll make the changes. But if the investigation is fruitless and the dispute isn’t solved, you can ask your consumer reporting company to add a statement of dispute whenever you file your credit report. Also, for a certain fee, you can ask your consumer reporting company to send those who have received your credit report a copy of your statement. It is important that inaccurate information is spotted and remedied immediately. So that you can prevent any related problem such as bad credit standing that may arise due to the wrong data. The future of the payday loan industry is rather bright, and there’s no sign of stopping. In the near future, it is predicted that the industry will grow even more significant.