Payday Loans UK Lenders - Various Myths And Facts About Payday Loans
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Payday loans are safe and suitable for borrowers when used correctly. However, this doesn't stop a plethora of myths from being associated with payday loans UK lenders. These myths may even stop individuals from using them. It is, therefore important to break these myths and highlight the truth about short term cash loans.
The first myth is it is simple to get a cash loan even if the individual has little chance of being able to repaying the loan. That is not the case with payday loans UK. While payday online applications are processed quickly the approval process is not easy. Loan companies consider the borrower's affordability very seriously even when the same person has previously obtained a loan from them. The next myth is that these loans are extremely expensive due to their high APRs. As with all types of loans APR's vary from company to company and it is always best to compare rates before agreeing to a loan. The third myth is the fact that most lenders are similar since the FCA controls them. FCA simply sets the maximum rate that payday lenders charge. Many lenders charge lower rates and there is great competition in the market, this is always to the benefit of customers. The fourth common myth is that lenders can use debit card information to access repayments from a borrower's bank account at any time without advising the borrower. However, the FCA regulation requires loan companies to tell the borrower the exact repayment schedule of the loan. Even if the lender utilises a continuous payment authority (CPA), there are restrictions on the amount of attempts that may be made.
Lenders and borrowers need to be carefully matched for payday loans UK lenders to be able to meet the borrower's needs effectively. When utilised carefully, payday loans are safe, cost-effective and suitable for a wide range of individuals in different circumstances. Head to https://trueblueloans.co.uk to find out more from True Blue Loans, one of the UK based lenders today.