The original concept of a ‘payday loan’ is a loan to tide you over until your next payday. Hence the term ‘payday loan’. These types of loans are not as popular as they used to be as the interest charge is comparatively high for such a loan over a short time period. The Financial Conduct Authority (FCA) has bought in rules to regulate the companies who provide these type of loans. You will be pleased to hear that QuidMarket is a fully FCA authorised company and lends responsibly.
Today’s meaning of a payday loan
Today, the term ‘Payday loan’ is used by the loan industry to describe a short term loan. Instead of paying the whole amount back in one lump sum, the loan company will provide the applicant with a payment instalment plan. One instalment each payday; hence, a payday loan. These instalments make the loan repayments more manageable enabling the customer to repay the loan over 3 to 6 monthly instalments…
How do payday loans work?
Payday loans by QuidMarket are simply short term loans that the applicant makes a manageable payment each payday until the loan is repaid.
What is the difference between a short term loan and a payday loan?
Here at QuidMarket, there is little difference between a short term loan and a payday loan, simply the term of repayment.
What is the difference between a bank loan and a payday loan?
Bank loans are generally repayable over a term from 12 months to 5 years, and are for amounts from £1000 to £25,000. Use a bank loan to help fund large purchases such as cars or furniture. A payday loan is designed to help a customer with a short term cash flow issue. They are quick to apply for and available online, with decisions on an application made on the same day. APR’s can appear high if you take a loan over a short time period. Access an article to improve your understanding of APR here.
Do I need a perfect credit rating to get a payday loan?
In an ideal world, we would all have a perfect credit rating. In reality, many things can have a negative impact on credit rating. QuidMarket will consider an application from an applicant without a perfect credit rating if they pass the initial eligibility check:
- Access an article to learn more about the QuidMarket Eligibility Check here.
- Access an article if you wish to improve your Credit Rating here.
Can I get more time to repay my payday loan?
If you find yourself in financial difficulty or if you are going to struggle to pay back any of your monthly instalments, it is imperative that you contact your lender immediately. QuidMarket have a dedicated team of Customer Care Professionals to help you work through your repayment plan. Never consider burying your head. This will only aggravate your lender and it could have a detrimental effect on your credit score. Openness is always the best option.
What is a payday advance?
The definition of a payday advance is the same as the original definition of ‘payday loan’. Again, these types of loans are do not have the availability as readily available as they once were