Before you choose a payday lender, there are several key things that you must take into consideration.
Interest Rate: The interest rate charged by a payday lender is perhaps the primary factor that influences a potential customer’s decision the most. While shopping for a payday lender online, what you should remember is that an APR is just a number. Payday loans are short-term cash advances which usually have a repayment period of a month, and they are not to be considered as a long-term financial commitment.
The payday loan industry is a legitimate enterprise that is committed to providing regulated services to customers, enabling them to avail of instant and convenient short term payday loans in times of unexpected financial difficulty. It is true, however, that there are some dubious organizations out there looking to scam potential customers. It is therefore essential to have a clear insight into how the process of online payday lending works, in order to make an informed decision. Here are a few red flags you should watch out for:
There have been reports from various authorities, including the Office of Fair Trading (OFT) and Advertisement Standard Authority (ASA), on how the credit industry has been frequently breaching the law on advertising credit. The law suggests that credit sold online must effectively disclose all the key information about a product, such as APR, name of the creditor etc. This guidance was formed to protect consumers from being misled since the law presumes a customer to be naive and inexperienced.
From our experience, we gather that our customers are often at wit’s end trying to figure out how to repay their payday loan in full, which can be a significantly large amount considering their current state of finances, on the repayment date. We understand that there was a need to repay loans in easy instalments every month, thus helping manage monthly budgets in a more relaxed manner. To this effect, Lending Stream has created its Relaxed Repayment Plan (RPP) that offers customers the option of lower monthly repayment amounts.