Myths And Facts About Payday Lenders Only UK - What You Need To Know Now
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Payday loans are convenient and safe when used correctly. However, there are several myths concerning payday lenders that might keep individuals from using them. It is important to break these myths and discuss the reality of using these types of short term cash loans.
When getting cash loans, the first myth is that it's too easy to get approval for a loan. Some still think that everyone can get a loan even if they don't have any chance of making the repayments. That is not the case for payday loans UK. It may be true that payday loan applications are processed immediately, but the approval process is not a walkover. Lenders do consider the borrower's affordability seriously, even if person has successfully been approved for a loan from them before. The second myth is that all short term loans are very expensive due to their high Interest rates. As with any financial product, you need to shop around for the best rate and remember that these loans are only ever meant as short term solutions. The third myth is all lenders are alike as they are regulated by the FCA. However, the FCA only sets the maximum rate that payday lenders may charge. Some lenders charge lower rates and there is competition within the market that keeps rates competitive. The fourth most common myth is that lenders are able to use debit card information to take money from a borrower's account without notifying the borrower. The FCA regulation calls for loan companies to tell the borrower the precise repayment schedule of the loan. Even if the lender utilises the continuous payment authority (CPA), there is still a restriction on the amount of withdrawal attempts that can be made. Borrowers may also eliminate CPAs by getting in touch with their banks.
Though there are several myths about payday lenders only UK, these are often misguided. When used carefully, payday loans are safe, cost-effective and suitable for most individuals who need a short term financial solution. Go to https://trueblueloans.co.uk to get a loan from one of the UK based lenders, True Blue Loans.