Should you go direct to a payday loan or short-term loan lender or should you choose a broker like LoanPrincess?
Because of the unique way that LoanPrincess works, we’re as certain as we can be that you’ll get the cheapest deal by using us to match you to your ideal lender.
What advantages does using LoanPrincess bring you and how exactly do we secure the very best rates? Please read our article on LoanPrincess and how we work to find out more.
We only work with Financial Conduct Authority-approved lenders
LoanPrincess only works with Financial Conduct Authority-approved lenders. You can find every single lender we work with on the Financial Services Register. In fact, we guarantee that, if you use us to search for a payday loan or short-term loan whether now or in the years to come, we will only ever work with Financial Conduct Authority-approved lenders.
What does that mean to you? How does that help you?
Payday loans and short-term loans are the most heavily-regulated types of consumer finance in the UK. The rules imposed on lenders in this sector are tougher than in any other part of the finance sector.
It’s very hard for companies to become Financial Conduct Authority-approved lenders. Applying for a licence is complicated and it can take up to a year’s worth of due diligence and investigation by the authorities before they’ll award a licence.
Once a company has a licence, there are five main rules it has to stick by to be able to lend out money and keep their licence. Those important rules are:
• interest can’t be charged at more than 0.8% per day. That means that, if you borrow £500, you can’t be charged more than £4 in interest (0.8% of £500 is £4).
• if you miss a payment, your lender can charge you no more than £15 for a default fee. Many lenders have now dropped their default fees altogether.
• when you add up all the interest and fees charged on a loan, it can never come to more than the value of the original loan. So if you borrowed £500, you’d never pay more than £500 on top of that in interest and other charges.
• your lender collects your payment using something called a Continuous Payment Authority (CPA). If they fail to collect a payment via the CPA twice, they can’t try any further times until you tell them that it’s OK to do so.
• your lender can’t “roll over” your loan (which adds further charges and costs) more than twice. If they do roll your loan over, they must send you information about how to contact organisations which can help you with your debt.
When you allow LoanPrincess to arrange a loan for you, whichever lender we partner you up with has to follow all these rules. That’s really important for your peace of mind.
We’re Financial Conduct Authority-approved ourselves
Not only do we only work with Financial Conduct Authority-approved lenders, we’re a Financial Conduct Authority-approved broker.Brokers arrange loans by matching you up with lenders most likely to want to work with you.
Our lenders tell us the type of people they’re happiest working with. They give us the in-depth details we need to know and they also give us continuous feedback on the borrowers they’re looking to lend money to.
We feed that into our computer system which then, within seconds, selects the lenders whose ideal borrower profile you’re closest to.
LoanPrincess was set up with two goals in mind. First, we want to help borrowers find the cheapest deal available in the shortest possible time. Second, we want to find out lending partners the borrowers they’re happiest working with.
We save you time
As we said earlier, there are dozens of lenders out there and applying to each and every one of them until you get a “yes” is time consuming and frustrating.
We cut all this searching out for you meaning that you can get on with your life while we do all the hard work for you.
We only do one credit search even if there are multiple lenders happy to make you their newest borrower
Another important reason to use LoanPrincess is that we only run one credit search per application and that’s even if we find 10 lenders who we think want to work with you.
If you applied to each of those 10 lenders direct, that would mean there would be 10 searches on your credit report in a very short space of time. All lenders, even those lenders who would normally be happy to work with you, don’t like to see lots of applications on your credit report because they start to worry that you’re in real financial distress and that you’re trying desperately to get money.
That might be completely inaccurate – in fact, borrowers who do this are often just doing something really sensible by searching out the best deal for them. However, loan companies see it differently so why not let LoanPrincess make one credit search on your behalf for all the lenders we think you’d be well matched with?
We’re completely transparent
We don’t hide anything – we’re completely transparent. What you see with LoanPrincess is what you get.
We want all our borrowers to know exactly what they’re signing up to before they agree to take a loan out. We’ll tell you everything you need to know about a loan in the easiest, most jargon-free way that we can. That includes the total cost of a loan, the number of repayments, what those repayments will cost you, any default fees, and much more.
Easy application form
At Loan Princess, we will ask you a very minimal details that is required to run a credit check and match you up with the lenders who will be more than happy to lend you the funds.
The application filling process is not lengthy, and it won’t take much of your time.
To start your application, please click here.