New payday lenders enter the market every year with new ideas and products and offer different ways for customers to borrow money. In the UK, there are around 40 payday lenders and around 10 new lenders every year. At Payday Loans Hub, we are pleased to be working with a number of new lenders that only started in 2018. We ensure that all the companies we work with are FCA authorised and committed to responsible lending.
By clicking on apply now and completing our application form, customers will be matched with a lender who is best suited to their criteria and their loan requirements. We are dedicated to helping you find the right loan for you and successful applicants can receive funds within 1 to 2 hours of applying.
What Are The Benefits of New Payday Lenders?
Different criteria: Some of the new payday loan companies that emerge also come with new criteria and may be willing to accept different customers. For instance, new lenders may take a view on things like bad credit, applicants on benefits, the unemployed or those that work part-time.
If you feel that you might have been declined by a more established, mainstream lender, you may be inclined to apply with a new company to see if you are eligible to borrow money.
Alternative products: New lenders are always innovating with new technology and payday loan alternatives. For instance, new companies are able to offer things like top up loans, online overdrafts and online credit facilities – moving away from the traditional sense of payday loans that last only 14 to 28 days.
The idea of alternative products is designed to offer a more flexible approach to payday loans and help customers get into a better financial position once the loan has been repaid. In some cases, the products are made to help people improve their credit scores so that they can access more affordable finance in the future.
Competitive pricing: In a very competitive industry which is heavily regulated by the FCA, payday lenders can charge a maximum interest rate of 0.8% per day. When new payday lenders come in, they may look to offer a cheaper alternative in order get more business. This means that companies that have just started may offer better interest rates and more flexibility than existing providers.
Why Apply With a New Payday Lender?
The payday loans industry is commonly criticised for charging high interest rates and a number of lenders have fallen down by not practicing responsible lending. Whilst the industry has been improved significantly since the introduction of FCA regulation, there are still a number of people who are not sure about payday lenders.
You may be familiar with the stories in the news and the high cost lenders that charge thousand of percent in Representative APR. However, this does not always need to be the case.
New payday lenders bring new life to the industry – offering more competitive rates and alternatives to help customers who are looking for short term finance.
Above all, if you find that you have been turned down by a traditional lender due to poor credit or low income, you may find that you have more successful with a new lender.
What Are The Rules For New Payday Loan Companies?
The new rules introduced by the Financial Conduct Authority have made huge improvements to the way the industry is regulated and have significantly improved consumer confidence. The rules that new payday lenders have to abide by include:
- FCA authorised required
- Price cap on daily interest
- Price cap on default charges
- Sufficient checks are carried out
Every broker and payday loans direct lender that offers consumer finance must be authorised by the Financial Conduct Authority. This is usually a thorough application process to ensure that the company is fit and proper to provide consumer loans in the UK – and can take several months or years to be accepted. This provides a minimum standard that all companies must adhere to and it ensures that customers are protected accordingly.
A price cap is in place to ensure that individuals never repay double what they have borrowed. This equates to around £24 per £100 borrowed (0.8% per day). Similarly, there is a limit on default charges for any late customer repayments, which are capped at £15.
Furthermore, lenders must carry out adequate checks to ensure that a borrower can afford to repay their loan without falling into financial difficulty. Common checks include credit scoring, affordability checks of income vs monthly expenses and also a phone call to confirm customer details.
How Payday Loans Hub Can Help
At Payday Loans Hub, we work with a number of new providers and established providers so that you get the best of both worlds. Our application form only takes 5 minutes to complete and can be filled in online by desktop, mobile or tablet. There is no paperwork, with nothing to print off, fill in or post off – it is all completed online.
Our application form is backed up by technology which is able to match your requirements with the best lender for you. So depending on your financial circumstances and the amount you have requested to borrow and how long for, our technology will provide you with an instant decision and suggest the best lender for you.
Our service is completely free to use and we will not pass on your information to any other companies without your consent. Our site is kept on a secure server to ensure that your information is kept as safely and confidentially as possible. As part of our commitment to responsible lending, we will always recommend the best lenders for you that are FCA authorised and we will always have your best interests at heart.
We are also able to accommodate those who have a history of bad credit by pairing your application with a lender who will consider it. If it is not a payday lender, you may be matched with a company that can provide funds with the help of a guarantor or extra security to help you get the finance you require.