Payday Loan News
QuickQuid APR - What Does It Really Mean?APR can be confusing when it’s applied to a loan product that isn’t borrowed over a year’s time. Let’s clarify what APR means in terms of a cash advance.
APR stands for annual percentage rate. Annual means one year. So APR is describing how much a loan would cost if the loan was borrowed for an entire year. QuickQuid only lends short-term loans. Short-term loans are typically borrowed for four weeks. The law (Consumer Credit Act 1974) requires QuickQuid to list the APR simply for the fact that it’s a financial product, but APR really has nothing to do with a four-week loan. Yes, the APR is extremely high, but if you take the time to find out how much a loan actually costs, you’d probably be surprised.
Here’s how it works:
If you borrow £100 from QuickQuid for four weeks or one pay period, the maximum amount you could be charged is £29.50. If you borrow £200, you’d be charged £59. Borrow £300 — charged £88.50. So you can see that though the APR listed is very high, the actual cost of a cash advance isn’t so high.
What Does It Mean to Be a Fully Licensed Payday Lender in the UK?
QuickQuid is a fully licensed payday lender in the UK compliant with all UK and EU laws including the Consumer Credit Act, Data Protection Act and EU Safe Harbour. QuickQuid is dedicated to responsible lending practices and only lends to customers who meet the requirements to pay back their loans. QuickQuid advocates that payday loans should only be used for short-term financial needs and not as a long-term financial solution. Customers who have credit difficulties should seek credit counselling.
There are many opponents of payday lending who view payday loans as harmful to consumers and wish to impose stricter regulations. If this were to happen, responsible licensed lenders like QuickQuid would be shut down and illegal providers would capture 100 percent of the short-term consumer credit market. The demand for short-term and small loan amounts would not magically disappear. Strict regulations on payday lending will only make it easier for illegal lenders to swoop in and prey on those with immediate financial needs.
By using a fully licensed lender like QuickQuid, you’d be able to borrow the funds you need between paydays and trust that you’re dealing with a reliable company. If you’re in need of fast cash, simply apply online at QuickQuid.co.uk and get cash deposited directly into your bank account the same day§ at no extra charge. There’s no need to fax in any extra documents or fill out additional paperwork. The online application only takes about five minutes to fill out. Once you’re approved for a cash advance, you’ll get the cash in your account and will be able to start covering your emergency expenses right away.
Typical Uses for Payday Loans
Payday loans are typically used for short-term immediate money needs when a consumer is short on cash between paydays. Payday loans are only recommended for emergency expenses - think car repairs, overdue bills and medical expenses. Payday loans are definitely not recommended for frivolous use. If you’re wishing to go on holiday, don’t use a payday loan to cover the cost. Instead, set up a small savings account and put aside a small portion of your paycheque each month. Plan for your trip in the meantime - the anticipation only makes the end result that more rewarding.
Another use for cash advances is to avoid overdraft fees and bounced cheque fees. These fees tend to be higher than cash advance fees, so by taking a cash advance you could in fact save money. QuickQuid offers quick and convenient cash advances through its online application. Visit www.QuickQuid.co.uk the next time you’re faced with an emergency expense.
