APR Representative: Representative 1169.67% APR
Representative Example: Borrow £100 for 30 days. The total charge for credit is £24.00. Total amount repayable is £124.00. Fixed interest rate of 292.25% per year. 1169.67% APR Representative.
Warning: Late repayment can cause you serious money problems. For help, go to: moneyadviceservice.co.uk

Fees and charges in Payday Loans that can be saved?

With increasing number of people counting upon additional funds in the form of loan, there are many who do not want to pay fees at the time of applying. First we will discuss types of fees and charges in payday text loans and ways to save them.

The basic and main component of payday loan repayment money is principal amount plus regular interest. The regular interest is well caped by FCA (Financial Conduct Authority) so no lender can over charge it. As per rule interest rate is 0.8% per day, for example if £300 is loan amount then interest will be £72 for 30 days.

The other component may be of £15 as penalty for non repayment on due date. This is also fixed by FCA, and in no case borrower will pay more than twice the principal amount.

Above payments are well regulated and justified so you have to accept these if you are planning for payday loans.

What may be other hidden charges?

In some case due to lack of knowledge borrowers are forced to pay unnecessary charges which can be avoided, how?

Processing or upfront charges in which lender or his agent may ask to pay some amount in advance for loan approvals; this is totally illegal and unauthorized. You should never accept it and if someone is compelling it you can make a complaint with FCA or other law enforcement agencies.

Broker’s charges or commission is second but common charges which can be easily avoided, how?

Always apply for loan with lending source means direct lender to rule out any third party involvement in process. Although brokers do not charge fees from borrowers directly and they get commission from lender after your loan approvals, but ultimately this extra burden is going through your pocket only.

The third extra fees or charges are of recovery agent charges, which can be also saved, how?

When you fail to repay loan amount on due date without informing lender, he may send your case to third party recovery agent, the charges of this agency is also you have to bear with outstanding loan. So it is very important to inform your lender about inability of repayment in due time, he may offer you rollover or reschedule the payment date. Of course rolling over is also costly affair as this include penalty plus interest on total outstanding loan but by this way you can save collecting agent charges and unnecessary harassment.

The fourth charges can be arises due to lender put your case at county court for legal remedy of non repayment of loan, this can be avoided how?

Before loan application one should plane for timely repayment, if you have any doubt about refund then don’t go for these loans. As you know payday loans are short term unsecured loan and bear high interest rate so never experiment with them. If you have any other loan outstanding and you are planning to repay through this credit fund then you are in very risky way and may be trapped in financial crises.

One more impact on your financial status that of adverse credit score entry this can be avoided, how?

When you become a loan defaulter, the lender may refer your case to credit score agency for negative entry. If this happens then this will affect your life immeasurably we will try to explain in following lines.

Every negative entry in credit score will make it poorer and after a certain mark you will be tagged with bad creditors. This will affect your employment prospects, getting gas or electric connection, tough to get rented house, loan application will be rejected or may be approved on higher rates and so on.

It is in your favor to choose wisely for text or payday loans and borrow the money which is well within range of your monthly savings. If your monthly saving are small and higher sum is required then you can go for multi month loan term like 3 month, 6 month, 12 month or more than that also.

If you have your own home or other property to put as collateral then you can try for long term loan in less interest rate.

We have discussed in details about risk associated with payday loans, now we will try to explain why these loans are popular in UK.

Payday loans are designed to solve short term financial crises in prompt and secure manner. As loan decision process is very fast and online to you can find cash solution then and there. You have to pledge nothing as guarantee so your valuable property will not be compromised.

These loans can be applied through online mode this makes them very trendy, in fast moving life no body have much time and resources to visit lender’s store. With online search services you can attempt for as many quotes as you wish and make your final decision after comparing all.

Previously payday loans are accepted for maximum one month duration but now this concept is revised and payday loans are offered up to 12 month also. This added beauty of installment loans has made text loans more affordable and practical.

When loan term was limited then lenders are offering fund for limited amount like £50, £100, £200, £300 and max up to £1000, but after revised term policy loan amount range increased many fold and up to £5000 are also approved by some lenders.

Role of Credit Score in Payday Loans

For higher sum the credit score check plays a vital role. As we know payday loans are sanctioned on the basis of monthly salary of the applicants to for smaller cash and short duration loan term the role of credit score is not too much. But for high sum and long term every lender performs a credit score check on borrower to avert lending risk.

As per new regulations, every lender have to check loan affordability of loan seekers before loan disbursement so credit check is mandatory for all lenders and there is no scope for payday loans no credit check.


We at textloansnofees offer you our free loan search service; here you are welcome to get free loan quotes from direct lenders. If you are also one such individual and seek cash respite for urgent needs then Text Loans No Fees is the online entity from where you can apply for additional funds. We take no fees or broker's charges as upfront fees from the people who choose to apply for text loans through us making it further easier for you to gain money. We aim to make your access to much needed cash simpler and faster. We associated with such lenders who do not go for any documentation and faxing at time of payday loans approval means text loans are processed quickly by our lenders.

Why with us?

You can choose to avail the loans through us without having to worry about the problem delay in text loan acceptance as getting approval is possible without any fuss, and you get green signal in verification of the loan deals very fast. Our associated money lenders accept loan application despite the fact you are tagged with financial crises and needed to solve it quickly. There is no need for you to worry at all because your payday loan application will be processed very fast and you will get £100 loan without any hassle and money will be credited in your bank account even on the same day.

How to apply?

As far as applying for loan is considered, it will not be taking much of your time as we are accessible round the clock. An applicant who chooses to avail our services will not be facing any kind of hassle as one can fill and submit two minute online application form as and when the need for fast money crops up. You can apply at any given point of time and from anywhere in UK For Text Loans no fees.

Apply for Text Loans and fetch money with www.textloansnofees.co.uk timely.


Those of you who are willing to avail the benefits of applying for loan through Text Loans NO Fees must meet the conditions that are set up by lenders. An applicant should be a working class UK citizen who must have crossed 18 years of age and has a bank account. If you meet these conditions then you can get instant decision of text loans No fees or no brokers and you can get hold of timely funds. You will not be facing any kind of faxing hassle when applying through us. In addition to this, you are given the liberty to spend sanctioned amount as per your desire and wish.

For latest information about text loans, payday loans or 12 month loans please visit our blog

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Warning: Late repayment can cause you serious money problems. For help, go to: www.moneyadviceservice.co.uk

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