APR or Annual Percentage Rate is the term for the interest that a lender will pay, based on the amount they have borrowed, as well as other charges which are stated as an annual rate charge. The typical APR that is shown advertised, is the rate that approximately 66% of lenders will be charged. APR takes into account:
- The interest rate that you will pay on your loan
- The term (length) of your loan, the method of repayment, the frequency of your payments and the amount of your payments
- Various fees that are applied to your loan
Fees and interest that is expressed, is shown as an annual rate and the term is based on a full year's rate of charge.
Every lender has to tell its customers their APR before you sign and commit to a regulated consumer credit agreement.
Looking at APRs is useful when you are comparing financial products that are very similar, however, this is not so useful when comparing products that are different.
Use a payday loan like a taxi
Everyone knows that taxis are a fast and convenient way to get from A to B but they are not used on a regular basis, as a person's only form of transport. Payday loans are much the same, in that they can be used whenever you need cash quickly in the short term but they should not be used in the long term.
Anyone who is looking for a way to get money in the short term will find that a payday loan is an excellent way of doing this, which is both fast and convenient.
Open and transparent fees
Here at PaydayMart.co.uk we charge customers £30 for every £100 they borrow. This rate does not alter, so all of our customers know how much their repayment will be as soon as they apply for their loan. Take the time to look at the repayment figure before you apply to ensure that you can afford the full repayment. Payday loans are a transparent financial product that tells the customer precisely how much they will have to repay before they apply.
PaydayMart.co.uk does not charge arrangement fees for its loans.
This information should help you to understand why a payday loan APR seems so high. Keep in mind that prior to applying for one of the payday loans from PaydayMart.co.uk you will know the total figure you will be repaying.
