Our Charges – Completely Transparent
Borrowing could not be easier, there is no paperwork, documents or fax’s to
fill out. Thanks to our fully automated online service our system is a paper
free system from start to finish. Simply use the sliders on the home page to
decide exactly how much you would like to borrow over how many days you would
like to borrow it for. We will show you the full cost and, once you're happy
with everything simply click apply. We will then ask for some personal details
and banking information for our super-Quick credit check.
It is however important to look at the total amount payable and check that
you can afford the repayments. Pay day loans are one of the only financial
products that provide the customer with complete transparency, so that you know
exactly what you are going to repay. Also there are no arrangement fees to set
up the loan.
APR explained
The APR stands for Annual Percentage Rate and is the interest payable on the
amount borrowed and other charges expressed as an annual rate charge. Typical
APR is the advertised rate that applies to at least 66% of successful
applicants. The APR includes factors such as:
- the interest you must pay
- how you repay the loan; the length of the loan agreement(or term);
frequency and timing of payments; and amount of each payment; and
- certain fees associated with the loan
The term assumes the rate of charge for a whole year and expresses interest
and other fees as an annual rate. All lenders have to tell you what their APR is
before you sign a regulated consumer credit agreement.
APRs are a good way of comparing similar products but are not so effective
when comparing different products. The following table demonstrates this:
Payday loan charges comparison table
| Loan Type |
Amount |
Months |
Repayment |
APR |
Interest |
| Bank Loan |
£500 |
36 |
£745 |
16.9% |
49% |
| Bank Loan |
£500 |
60 |
£970 |
16.9% |
94% |
| Pocket Money Payday Loan |
£300 |
1 |
£375 |
1737% |
25% |
As you can see the APR for the two
installment loans are the same but the actual interest repaid as a percent of
the loan is hugely different – and much higher than a payday loan.
Hopefully, you now have a greater understanding of why the APR for a payday
loan looks so high, but remember that before you even apply for a payday loan
with Pocket Money Pay Day Loans, you know exactly how much you are going to
repay and when. See the difference for yourself!