In the UK, there are many payday loan brokers and affiliate companies but only a handful of payday loan lenders. Among these lenders are MEM, Blizzard, Quick Quid, Wage Day Advance, Speed-e-Loans, Payday Express, PaydayUK, and PayDay Bank. Dealing directly with a payday lender results in a less expensive payday loan that features no broker fees.
Most payday brokers require borrowers to pay a fee for their assistance in locating a payday loan. When a borrower deals directly with a lender, this fee is eliminated. Some lenders provide same-day loans and not all require the borrower to fax documentation during the application process. Though the APR may be high, the short-term nature of these loans equates to relatively little interest being paid.
Taking out a payday loan and paying it back as agreed will result in a pleasant borrowing experience. When the loan is not repaid on schedule, problems can arise. Failure to repay is called “rolling over” and
can cause a small debt to snowball into something much larger. When taking a payday loan from a lender or broker, the individual should not borrow more than can be repaid.
If an individual exhibits proper financial management with a lender, the opportunities for borrowing may be expanded in the future. The most convenient way to find one of these lenders is to do an online search. It is important to read the company’s Web site to ensure that it is a lender, not a broker.
When individuals are still unsure whether the entity is a lender or broker, further research should be done online and over the telephone. The potential borrower should not sign any documents unless all fees are clearly outlined in writing. When in doubt, the entity should be asked if it charges a fee for the loan- this will reveal that it is a broker.