Payday Loans Charges Explained

Payday loans are a fast, fuss-free lending option that lets you access the money you need when you need it most.

Why does the APR
look so high?

The regulations that govern the provision of loans denote that lenders must show their interest rates as Annual Percentage Rates or APR.

An APR is calculated by working out the annual amount that you will pay in interest on a given loan. This can be a really helpful tool if you are looking to take out a mortgage, secured or unsecured loan, because it is likely that you will be re-paying the credit for 12 months or more. Therefore it can allow you to make a comparison between lenders at the point of obtaining the credit in order to get the best possible deal.

However, when you are looking to take out a short term loan that would be re-payable over a period of less than 12 months, the APR can become less meaningful. In the case of a payday loan you would typically re-pay the credit on or before your next payday and consequently you would have the loan for no longer than a 31 day period.

As a result the APR rate can seem less relevant; $100 paid back at an interest rate of $24 per month would indeed be very expensive (you would in-fact pay back nearly $400 in total), but over the course of a month you would only re-pay $124.

For this reason we choose to focus on the exact amount that you will pay back, rather than the Annual Percentage Rate.

Penalties relating to
late or non-payment

During the time at which you make your application and sign your loan agreement you will be provided will all of the details of your loan including the amount of credit you are borrowing and the re-payment date. You must remember to make your re-payment on or before the agreed date, as any late payments or missed payments could incur fees and charges from the lender. This may, in turn, increase the overall amount that you owe.

Please remember when making a re-payment to take into consideration any non-working days, such as weekends or bank holidays, as they can affect processing times.

As a result of signing your loan agreement you are contractually obliged to re-pay any monies that you owe, inclusive of the loan amount, interest and any interest or charges.

Disclosure of Fees

Because Perfect Payday is a broker and not a lender, there is no charge applied for our service. Any fees or charges incurred will be via the specific lender and will have already been set out within your loan agreement. As part of our policies we endeavour to only work alongside lenders who adopt reasonable practises and who offer a high level of service to all of their customers.

We will ensure that we make the process for you to obtain a loan as straight-forward and simple as possible. By providing all of the relevant information about the process for obtaining and re-paying a payday loan we can highlight what you can reasonably expect from the service.

Our service is free so, by making a loan application through Get Paid Today, we will not charge you for using our loan search.