Payday Loan charges to be reduced by FCA action

Nov 11, 2014 Payday Loan charges to be reduced by FCA action Today the FCA who regulate the payday loans industry, amongst other things, announced its final decision on the cap on interest rates and charges that lenders can make. These new limits will come into effect from January 2015. So, what exactly has the the FCA announced? In effect it confirms what they proposed in July 2014. This includes: A maximum interest rate of 0.8% per day No more than £15 for a charge if a borrower defaults on their debt A person cannot be charged more than double the amount they borrowed These limits will also apply to other short term credit lenders who are not explicitly payday loan lenders.     Where does this leave borrowers? Interestingly the 0.8% per day interest rate limit means that if you borrow £100 for 30 days you would not pay more than £24 in interest. A rate of £24 per £100 borrowed is back to the rates charged when payday loans first emerged around 10 years ago. Back then the loa
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The Rise & Rise of the Bad Credit Loan

Oct 13, 2014 Blog RSS feed The increase in previous or current credit problems for many people has led to a changing of the guard in the relation to available credit options. If you are not fortunate enough to have a spotless credit history, the chances are many of the options that existed previously will not exist to you any longer. Possession of CCJs, arrears, being self employed or even having no credit history at all have led to financial institutions which were falling over themselves in the past to hand out loans all but shutting out borrowers due to stringent lending policies. Fortunately there are a now a rising number of lenders who specialising in offering bad credit cash loans specifically for those borrowers who have found themselves being frozen out. Specialist Bad Credit Lenders These specialist lenders fully understand that just because someone may have run into financial difficulty in the past, does not mean that they are a lost cause who can never be trusted again. B
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Top 3 Reasons to Become a Loan Guarantor

Oct 13, 2014 Blog RSS feed Guarantor loans are a fairly old fashioned type of loan which has made a recent resurgence because of the fact that they are available to borrowers who have a poor credit rating. As the ability to successfully apply for a loan with a bank or building society has begun to subside, the popularity of guarantor loans rapidly simply down to the fact that they are a viable and affordable option. What is a Guarantor? The crucial factor regarding the application for a guarantor loan is the presence of the loan ‘guarantor’. The guarantor is a third party in the loan application who will guarantee to make the repayments should the borrower have difficulty doing so. Why Would I Want to Be a Guarantor? If everything goes to plan, the guarantor for the loan will not have to do anything after signing the loan agreement. If however things go a little wrong, they will ultimately be responsible for paying the outstanding balance of the loan. Whilst hopefully this will no
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The Top 5 Reasons to Love Guarantor Loans

Oct 13, 2014 Blog RSS feed With so many loans available at the moment, it is not always easy to find out which one will be the best for you. Not all loans are available to everyone and some of the loans which are available to everyone, such as payday loans, can prove to be expensive. One loan that ticks all the boxes is called a guarantor loan and below we have drawn up a list of the top 5 reasons to love guarantor loans. No. 1 – A Bad Credit Rating is No Obstacle Although there are a number of great loans currently available, the possession of a bad credit rating will ensure that many lenders cannot turn down some applications quickly enough. Guarantor Loans have been rising up the popularity rankings for this very reason. Innovative lenders have stepped up to offer a type of loan which does not exclude borrowers solely because of their credit rating. No. 2 – Large Sums Available The majority of specific ‘bad credit loans’ are only available for relatively small amounts. Pay
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Top 5 Tips For Rebuilding Your Credit Rating

Oct 13, 2014 Blog RSS feed We often hear the comparison that taking steps to repair your credit rating is like going on a fitness push. Although it takes some time, if you work hard and stick to it, you can achieve your goals. Ideally speaking, the most effective way to manage a credit rating is to ensure that it does not become too poor in the first place. Obviously, this is not always possible and if you need to take steps to get things moving in the right direction, try the 5 tips that we have highlighted below. Tip 1: Check Your Credit Report The first step towards repairing a poor credit rating always begins with a thorough check of your credit report. Although it may cost a few pounds, it is not too expensive and a visit to one of the credit checking agencies such as Experian should be your first port of call. Your credit report contains all of the information which is factored in to calculate your score and although unlikely, it is possible that it may contain errors. It is of
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Guarantor Loans: Loans with Flexibility

Oct 13, 2014 Blog RSS feed There are lots of different variations of bad credit loan currently available. If you believe that you have difficulty getting a loan from a bank or building society due to the current state of your credit rating, this is great news. Whilst some of these loans can ultimately prove to be very expensive, there are some exceptions to the rules, with guarantor loans being high up the list. Guarantor loans offer the perfect way of borrowing for anyone who does not have a perfect credit history. Because they are essentially unsecured personal loans, they offer the ideal alternative to other bad credit loans including payday loans. What Makes Guarantor Loans Different? It is the presence of the guarantor that separates the guarantor loan from all other bad credit loans. The majority of other poor credit loans use either some form of security, such as the logbook loan, or a very high APR, such as the payday loan, to reduce the risk to the lender. Where the guaranto
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More Non Homeowner Guarantor Loans lenders join our panel

Oct 13, 2014 Blog RSS feed The UK guarantor loans market is certainly hotting up with more lenders joining the market all the time. Recently we’ve seen new arrivals looking to expand the loan options by broadening the pool of potential guarantors for borrowers. These new lenders are launching products where the guarantor can, for the first time, be a non-homeowner.  All you need to know about non homeowner guarantor loans is in our website. Borrow up to £7500 with a non homeowner as your guarantor We have a good number of lenders now able to accept non homeowners as guarantors. Loans of up to £7500 are offered on this basis. As with many things in life there is a trade off to consider. If you are able to provide a homeowner as your guarantor you’ll pay a representative APR in the region of 44% to 49%. Loans where you offer a non homeowner as a guarantor are still likely to be a little more expensive (because they are considered more risky). But these rates seem to be coming down al
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