If you are pressed for money and need an instant solution to an emergency, then you may have discovered payday loans online. Payday, or short term loans can be a great financial tool especially if you’re strapped for cash and do not want to become overdrawn with your bank, or use a credit card. However, the internet as we know, is no safe haven. Countless people get drawn into online scams every day and end up in further in the red. How can you know if your loans company is a legitimate and regulated business?
Payday loans online
Online loan offers are not devoid of scams. By simply filling out an application form on a dubious websites, you could be setting yourself up for a world of anguish and stress. Having funds swiped from your account, paying exorbitant rates or being threatened by debt collectors are just some of the undesirable negative realities of a scam. It is therefore important to look for a reputable site with excellent customer reviews if you are looking to source a loan online.
Payday Loans Online With MoneyBoat
Moneyboat.co.uk is the online lender of choice for anyone looking for payday loans online. We offer payday loans as a short-term solution to your immediate financial needs. We do however, encourage you to only seek out a short term loan online as a last resort to your financial issue.
Like you, we are cognisant of the dangers and pitfalls involved in shopping for a payday loan online. To highlight these dangers, we’d like to teach you about 7 vital truths that anyone looking to find payday loans online should consider before hitting the apply button.
1. You May Get Scammed
The sad reality of our time is that people are often looking to make money by using terribly unfair methods online. Since we cannot do anything to stop the vice of others, the best approach is to stay on top of the game and protect yourself from the scammers.
Dangers of fraud
The scam may come in various ways and the most common ones are the fake bait’ websites. Well, it is not fake per say because it is well developed and curated, but it may be as good as a manikin in a store as it is only for display.
2. Some Lenders Don’t Play by the Rules
Some lenders do not always play by the rules as set by the Financial Conduct Authority (FCA). These lenders post some misleading information regarding their offers on payday loans online, leading customers to believe that they offer the best affordable rates.
Some may even lie about the costs of their loans, insisting customers pay up to twice as much as they initially borrowed.
You may wonder how exactly these “lenders” manage to get twice the amount they gave to the borrower. Well, the scam works like this: The payday loans online lender requests for the borrower’s bank information where they will automatically take out the amount due when the date arrives, plus a financing fee. This lender, after taking out their money, may continue to make frequent withdrawals from the borrower’s bank even after the whole loan amount is paid.
Moneyboat UK is an authorised FCA lender. We pride ourselves on the fact that our customers receive a personalised service and are committed to lending efficiently and responsibly.
What you see on our website is exactly what you get. We offer loans to up to £1500 for the returning customers and £800 to new customers. Our rates remain constant throughout the time you take out your loan.
3. Online safety
There are risks to giving out sensitive information online. Payday loans online require you to give sensitive information about yourself like your residence and bank information. Remember, the internet is the biggest global market in existence. Unfortunately, some good hacking skills can have your information in the wrong hands.
We’re sure you may have heard the horror stories surrounding people sharing their personal information on social media. Sadly these tell-tale scenarios never seem to end well.
You may also risk getting money stolen in the future since your bank information will be out in unsafe hands.
Moneyboat.co.uk is a trusted direct lender in the UK. We treat your information with 100% confidentiality and would never compromise your safety.
We are focused on your immediate financial emergency and would never seek to put you in another predicament.
4. Not Everyone Is An Actual Lender
The internet is a free public platform. Anyone can post and advertise just about anything without facing serious consequences unless some investigations are carried out.
Did you know that not everyone who advertises for payday loans online is an actual lender? Some are what we call ‘lead generators’. A lead generator is also known as a loan generator. Essentially they act as a broker between some private unauthorised lenders and the customers.
The lead generator will first acquire your personal information and the loan amount you request. This is then advertised to a vast network of lenders in order to get you a deal.
This type of loan may not be at the lowest cost since there is an extra fee that is paid to the lead generator. It’s even more disheartening since there is also no guarantee that the payday loan recommended for you will actually be the lowest cost loan available. Rather, they may have been the easiest accessible loans.
When looking for payday loans online, it may not always be clear whether you are dealing with a lead generator or an actual lender. This is why you should be aware of signs such as, ‘linking you to other networks’ or ‘our network of participating lenders’ that point to a lead generator.
5. The lenders must disclose the total cost of the loan
You should not tie yourself to something that you do not fully understand. Just because a site advertises for payday loans online doesn’t mean that you should immediately apply for one.
Take your time to read what they have to offer. Otherwise, you may end up paying back the loan at a high-interest rate or end up getting entirely scammed.
The FCA treats payday loans like any other former credit and all lenders in the UK are legally required to disclose all the necessary information relating to the cost of the loan.
A credible lender will give all the necessary details pertaining to the loan that you need to make an informed decision on whether to borrow or shop around for better payday loans online.
The information includes but not limited to the following:
• The annual percentage rate, (APR)
This is the cost of the credit on a yearly basis. The APR is based on the total amount you want to borrow, the credit costs that you are being charged, the interest rate and length of your loan.
• The finance charge
That is the total amount charged in pounds sterling.
Try to ensure that all this information is provided in writing before you commit to a loan. If it is not indicated on the payday loan online site, you should take that as a red flag. It is more common for a scammer to hide fees and processes than a direct online lender. If you sense that this could be the case, avoid applying for the loan.
Moneyboat.co.uk offers its customers all the necessary information relating to the cost of a loan on our site.
Our staff are also available to advise you on the terms of the loan if you have a hard time understanding them.
We ensure that you make an informed decision before you take out a loan with us.
6. It should be possible to cancel your loan
Since payday loans are taken as an emergency or last resort when all other options fail, it is possible that a borrower may get another favourable solution and opt out of the loan.
Many borrowers do this within the first few days or less of borrowing the loan.
Do You Have All Of The Details Of Your Lender?
Payday loans online sites give information of the lender like the street address, email address, and phone number. Ensure that you can easily contact them in case you need to make a cancellation. It would be wise to try out the phone number provided to ensure that it is a working one. You should also inquire about their working hours to ensure that you always find the lender when you contact them.
Moneyboat.co.uk allows its customers to cancel their loans at no extra costs. Our cancellation policy indicates that, should you wish to cancel an open loan, you are allowed to do so at any time. Refer to the Consumer Credit Agreement that you initially signed for further instructions on cancellation.
7. Most Lenders Will Check On Your Credit Status
Payday loans online are a two way street of trust and as you check into the lender’s credibility, the lender will also check on your ability to pay back the loan. Neither the lender nor borrower want to risk losing money in a bad investment based on blind trust.
This is why many short term loan companies will pull up the borrower’s credit report to check on their eligibility. They will also want to confirm if the borrower has ever declared bankruptcy and verify their identity.
Having bad credit may ruin your chances of getting a loan with some lenders. Often they shun applicants with a poor credit history. It is considered a reflection of an applicants poor ability to pay loans.
Some other lenders, however, do give payday loans to borrowers with bad credit. They potentially allow the repayments to be made in instalments over a longer period of time than other normal payday loans online with better credit scores.
However, the loan is only available if you offer proof of citizenship, have a working phone number and are employed. You must also be in possession of a functioning UK bank account that is registered under your name.
Moneyboat.co.uk conducts an affordability and credit check on every single loan or loan modification. We use the services of Callcredit Information Group Limited to obtain our customer’s affordability and credit report. We make a decision on whether you are eligible for the loan or not based on your credit repayment history.
You stand a chance of getting a payday loan if you have a good credit repayment history. Payday loans are not intended to solve long-term financial situations.
So, How Do I apply for a payday loan online?
To get started with a payday loan, make sure you can make repayments. Often a few quick clicks online don’t feel as loaded as their after effects in the real ‘offline’ world.
In other cases, someone may contact you claiming to be a debt collector. If they ask you to repay your loan earlier than the agreed date then be weary of the potential scam. They may also threaten you with arrest or legal action if you fail to comply. The caller may have all your personal information like your bank details. This is a clear indication that your information was leaked to a third party.
Moneyboat.co.uk will never ask you to repay your loan earlier than the agreed date. We provide our clients with a secure and confidential means to access payday loans online at the most convenient rates. As a standing company procedure, we send out emails before a borrower’s account is debited. The email confirms the date we will debit the payment and the amount to be debited, giving the customer adequate time to make follow-ups with us.
Payday Loans Online: Deal or No Deal?
Shopping for payday loans online is a gamble. Once you get a reputable company that holds itself to a high standard – it’s worth it! Moneyboat.co.uk is such a trusted direct lender in the UK that is authorised by the FCA. You can count on us for a quick loan for a maximum of six months and a minimum of 10 days.
style=”text-align: justify;”>We offer our customers a clear, transparent and secure financial dealing, setting ourselves apart from our competitors.
Moneyboat UK is the online lender of choice for thousands of UK customers every year.