www.atmfastlend.com
With many products you'll often be
able to find them cheaper if you decide to shop online rather than you would if
you were to purchase on the high street. However, when it comes to financial
services, such as credit cards, bank accounts and loans, this isn't always the
case. So are you better off visiting a real store or applying for your payday
loan online?
Theoretically, the rates should be
reasonably similar. Whilst there will always be fluctuations between different
lenders and the rates they charge, you should largely expect to pay between 20%
and 30% interest on a payday loan. The real difference comes when comparing the
various charges, whether interest is applied daily or at a standard rate and
indeed how long it will take to get the money transferred to your account.
It's important that you take a look
beyond the advertised Representative APR. Whilst this is a good guide, it won't
necessarily provide an accurate insight into the actual cost of a loan. Payday
loans are a completely different entity to personal loans, credit cards and
other forms of finance which feature rates of interest that are shown in the
form of APR.
If you were to apply for a credit
card you could reasonably expect to see an APR of between 0% and 25%. This
means that over the course of the year your total interest will amount to
whatever the advertised figure is (depending on any changes to your credit
agreement). But this won't usually be charged in one go after 12 months has
elapsed, instead it will be reduced to a monthly level.
As such, if you were to have a
credit card that was advertised with an APR of 12%, you would actually end up
paying interest on your outstanding debt at a rate of 1% per month. So it's
always reasonably easy to calculate what the interest will be, look at the APR
and divide by 12. The same can't be said for payday loans though.
These aren't repaid over 12 months,
in fact most will be completed within a month. As such the APR is noticeably
higher than you would expect to see on personal loans; in fact it can even
reach in excess of 4000% with certain companies. This doesn't mean that you
have to cough up 40 times the original amount borrowed though, actually far
from it.
Because it is a short term loan,
numbers can be easily skewed, which is why it is important for you to find out
the actual cost of borrowing before committing to any form of payday loan. If
you were to visit a store, you can discuss this with their sales team who
should be able to provide you with an accurate quote on how much you would need
to repay. The same is true online though, with most websites providing some form
of tool to help you calculate interest and other associated charges, it's easy
to compare the various providers quickly and easily.
This is possibly one of the biggest
advantages of using the Internet rather than visiting a shop for a payday loan:
choice. You won't have any external pressure applied to you either as you go
through a number of sites or brokers to find out the real cost of borrowing. It
may well end up being cheaper to use an offline company, but without carrying
out comprehensive checks online first, you will never know what rates are
available.
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