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Affordable Loans

Affordability is undoubtedly one of the most important factors that borrowers look for when they apply for a loan. Nobody wants to pay more than is necessary and when it comes down to it, the UK is a nation of bargain hunters.

If you’re already in a position where you need to access credit, the chances are that you can ill afford to be paying any more than is necessary for a loan. Fortunately for borrowers finding the right loan dependent on personal circumstances can be a viable solution to dealing with unexpected costs, without breaking the bank.

At Little Loans we work to match UK lenders with lenders that offer some of the most competitive and flexible credit solutions on the market. To help borrowers find affordable loans that work for them, we’ve compiled answers to some of the more common questions posed by credit conscious customers.

What is an affordable loan?

The dictionary definition of ‘affordable’ is simply something that is not expensive. Unfortunately, there’s no way of measuring what’s expensive and what isn’t in an accurate way because we will all have a different opinion of where the boundaries fall. What seems expensive to one person could be positively cheap to another and the same goes for loans.

That’s why the term ‘affordable loans’ can sometimes be a little misleading. What’s affordable for you will entirely depend on your own financial situation and you should always do your research when looking for loans to ensure that you’re getting a competitive rate. If you do see companies advertising ‘affordable loans’, it’s important to check what the interest rate will be and to look into a representative example so that you can get a good feel for exactly how much a loan will cost you.

Can I get an affordable payday loan?

In the past payday loans became synonymous with extremely high interest rates and questionable business practices. Whilst this reputation wasn’t entirely unfair, quick short term loans have come a long way from that time to become an often genuinely affordable solution for many borrowers who find themselves in need of quick access to money.

Nowadays short term loans are a much more affordable, thanks in part to the Financial Conduct Authority (FCA) who acted quickly to make the previously high costs of payday loans a thing of the past. Dealing with the cost of loans amongst other things, borrowers can now pay no more than 0.8% of the total sum borrowed in interest per day whilst default fees are capped at £15.

As a responsible credit broker authorised and regulated by the Financial Conduct Authority (FCA), Little Loans works hard to ensure that borrowers can get a fair deal by applying for a quick short term loan with lenders from our panel. We’re not a lender and unlike some other credit brokers, we will never charge you anything for our services.

Nowadays short term loans are a much more affordable, thanks in part to the Financial Conduct Authority (FCA) who acted quickly to make the previously high costs of payday loans a thing of the past. Dealing with the cost of loans amongst other things, borrowers can now pay no more than 0.8% of the total sum borrowed in interest per day whilst default fees are capped at £15.

As a responsible credit broker authorised and regulated by the Financial Conduct Authority (FCA), Little Loans works hard to ensure that borrowers can get a fair deal by applying for a quick short term loan with lenders from our panel. We’re not a lender and unlike some other credit brokers, we will never charge you anything for our services.

How can I check whether a loan is affordable for me?

As we’ve mentioned, whether a loan is affordable for you will be highly dependent on your personal finances. First and foremost, it can be worthwhile to sit down and work out exactly how much you could realistically afford to repay each month. The key is to make sure that no matter what the cost of loan repayments might be, you can afford to keep on paying for all the essentials such as your rent or mortgage, household bills, for groceries and to keep a vehicle running if you have one. You should also consider planning for those little extras like dental appointments and necessary travel – which can spring up at any time. The key is to avoid overstretching your budget for the sake of a quick loan.

Whilst we can’t tell you if a loan is affordable for you, we can help you to find out if you are eligible to apply for a loan with a lender from our panel. Just enter your details into our quick and easy-to-use eligibility checker and we’ll provide you with an indication of whether you are likely to qualify for a quick loan. Better still, our eligibility checker doesn’t involve a credit check and so you can do that all-important pre-application research without impacting on your credit score.

How can I apply for an affordable loan?

These days, its simpler than ever to apply for an affordable loan online. Because there are so very many credit providers out there, it can be difficult to know where to begin or whether you are getting a good deal based on your circumstances. Two of the most common ways to apply for a quick and affordable loan are to:

  • Apply directly to a lender; and
  • Apply via an online credit broker.

Applying directly to a lender for an affordable loan

Going straight to the direct lender of your choice can be one of the easiest ways to apply for an affordable loan online. There are lots of companies that offer fast, short term lending at a range of different rates and on different terms.

Many direct lenders host application forms on their websites which are often able to provide you with a lending decision in a matter of minutes. When you have provided all the necessary details, the lender will perform a credit check which may influence your credit score in future. Once they’re satisfied with the results of the credit check, the lender will then confirm the amount they are willing to lend to you and the money can often find its way to your bank account in just moments*.

Applying directly to a lender for an affordable loan

Going straight to the direct lender of your choice can be one of the easiest ways to apply for an affordable loan online. There are lots of companies that offer fast, short term lending at a range of different rates and on different terms.

Many direct lenders host application forms on their websites which are often able to provide you with a lending decision in a matter of minutes. When you have provided all the necessary details, the lender will perform a credit check which may influence your credit score in future. Once they’re satisfied with the results of the credit check, the lender will then confirm the amount they are willing to lend to you and the money can often find its way to your bank account in just moments*.

Applying for an affordable loan via an online credit broker

Applying to a direct lender can be great for those who know where to look and what they want from a loan. But what if you just don’t know where to start, are concerned about damaging your credit score by making multiple applications to different lenders or just want to be sure that you’re getting a competitive deal? That’s where credit brokers come in.

Finding an affordable loan via an online credit broker can be just as easy as going directly to a lender and can come with some helpful extra services to boot. At Little Loans, we work with a panel of trusted direct lenders to quickly match you with the direct lender from our panel that is most likely to approve your application. You’ll still get all the benefits of approaching a lender directly, with money paid into your account on the same day as you apply*. We even help borrowers with more specific financial difficulties to find loans, so we can work with you even if you receive benefits or have a bad credit score.

I need advice on my debts. Who can I speak to?

If you are struggling financially, it is important to consider how taking out further loans may impact you. If you are concerned about coping with increasing levels of debt and financial commitments the organisations listed below can provide you with free and impartial advice.

moneyadviceservice.org.uk

stepchange.org

nationaldebtline.org

*Once approved, your cash could be sent within minutes. The time that it takes for the cash to be received in your account will depend on your bank’s policies and procedures, along with the total amount borrowed.

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Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. We’re a fully regulated and authorised credit broker and not a lender