Many consumers turning to short term borrowing choices now seem to favour the newest of the resources available; the installment loans. These loans are considered flexible and better able to facilitate the true needs of consumers who borrow in this specific manner. In real terms they have only become available in the last few years but are quickly being highlighted as the most suitable of the loans to be released from the online borrowing market. Installment loans have existed in other forms of borrowing for many years but it is only in recent years that this format of repayment has been made available within the short term borrowing market place. Whether its bank loans, store cards or credit cards for example, all of these resources have always been agreed with the understanding that monthly installments would be made until such time that the resource is question was repaid. With short term loans however, in the first years of their decade long life span, repayments were not offered in this way. In actual fact before installment loans the borrowing choice offered by online lenders was much simpler. Many of us will be familiar with the original product in question here and it was known as the payday loan. As the name of this product clearly indicated, uses of the product had to make repayment of the loan on their employment pay date. This meant repaying the loan as a lump sum repayment on this date. Where the product may have been simple and clear in its offering, the fact of the matter was that the repayments due was often too expensive for the consumers who used them. This is why a culture of ‘roll-over’ or ‘extension’ repayments became an ever growing concern within the payday loan market. These rollovers and extensions saw borrowers take the only repayment alternative which was available for the payday loan and one which was costly. For those who simply could not repay the total loan and interest charged by the lender, they instead took the option to repay an interest based repayment instead. This meant paying only the interest currently applicable on the account and then extending the full repayment until the subsequent employment pay date. This style of repayment proves costly and not effective for the borrower as the amount owed did not increase as further monthly interest was applied each time such a repayment was made; meaning the total amount owed never repayment.
The payday loan served to highlight that installment based repayments were in actual fact always the preferred choice among st short term borrowers, it’s just that installment loans in their current form had not been introduced yet. Where for what was many months in some cases, borrowers would successfully repay extension repayments, what was really needed was an installment based repayments from the start of the loan agreement. It was not only the borrowers who had clearly demonstrated the need for more flexible borrowing choices, the new regulating body quickly became aware of this too. This regulator was the FCA (Financial Conduct Authority) and it was their role to review and understand the downfalls of the online short term borrowing market and then make changes to rules and regulations to improve it. The FCA quickly became aware that far too often were consumers using these extension repayments and never actually reducing the amount they owe and furthermore, were increasing the cost of borrowing each and every month that such a repayment was made. The FCA’s objective was simple; improve the quality of service offered to short term borrowers and this has, over time, certainly been achieved. It is as a result of the new FCA rules and additional regulation that the lenders who exist in today’s market are more flexible and customer focused than anything or anyone that came before them. Modern day lenders of instalment loans are the product of the FCA’s findings and all of whom are regulated by the FCA in order to exist and trade. With the FCA approval a provider of short term loans online simply is not able to trade. So not only do consumers nowadays have better borrowing and repayment choices, they also have the added benefit of regulation backing for whichever of the lenders they choose to use.
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When it ever comes time for anyone to borrow money, there can always be a high number of different people who do not know exactly what borrowing options they have available. It is then their responsibility to explore the different options before any application can then be considered. It is now well and truly safe to say that the process of people only being able to borrow money from their local bank and the manager there has well and truly gone. From the financial market place these days’ people can look to borrow both short term loans and installment loans when a loan is available. Both these can be obtained from a range of different financial direct lenders. It enables borrowers the chance to apply for and then when possible obtain a range of different loan amounts for repayments then due back on the debt over a number of different repayment terms. Both short term and installment loans can be useful in what they offer yet they will each have both positives and negative features in what they provide. Below is extra information regarding short term loans borrowing and in particular this finance when obtained through direct payday lenders. I have found that in recent years more and more people are turning to short term loans for their borrowing needs. This is a good way people can borrow amounts usually somewhere between £100.00 and £500.00 for repayments then due back over a short period of time. A short term loan can then be defined as such as a way to borrow money for a short amount of time or a maximum time frame of twelve months. Any loan repaid back over longer cannot be classed as a short term way of borrowing money. It can be common that with this finance people tend to take out the loans when they have bad credit.
A common short term loan is that of payday loan lending and this is always useful for people who have poor credit and as a result they may struggle to get finance from elsewhere. Direct lenders can be out there for people who have poor credit and a low credit score overall. As well as the fact that these loans can be available for people with bad credit, they can be useful for people who need cash quickly. People who apply for the finance can normally do so online or occasionally over the phone in a quick and simple process that should take a matter of minutes to complete. If that same application is then accepted by the direct payday lenders that person should then be able to receive their loan in the bank account that same day. In some cases people apply for short term loans and if approved they can receive the money within just a matter of minutes. People really can get the money paid into their chosen bank account that quickly. It can be nice for people who need money for an unexpected bill perhaps for example. # Lend Plus is a small team of dedicated professionals who have worked in the industry for many years.
# We always try and make dealing with us as easy and as pleasant as possible. # We are always friendly and pleased to hear from our customers or prospective customers and the whole team is available if there is someone in particular you want to talk to. # Please check Lend Plus official website www.lendplus.co.uk |
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