I stumbled across a payday loan company called Safe Loans today and was intrigued… let me tell you why.
Safe Loans work in a slightly different way to traditional payday loan companies. Rather than restricting the loan period to one month they will actually allow you to extend it to as much as 4 months.
So for people who may otherwise struggle to repay a payday loan after a month they have a little extra time to get the money together to repay it. In fact it splits the loan repayments into 4 – so you’re effectively paying what you can afford to rather than paying it all in one go.
Safe Loans have actually been around since 1989 – longer than any other short term payday lender in the market at the moment.
I was surprised by this as payday loans have only really come about in the last 10 years or so. However, short term loans have been around for far longer so I guess these guys fall into the former category – but like any finance company they have to evolve with the changing market.
Like the majority of payday loan companies they also abide by the Consumer Credit Association and are committed to treating customers fairly.
In addition to this they are very exact with their customer requirements and who they lend to. Safe Loans state that they will only lend to people who are over the age of 18, have a UK bank account (with a debit card linked to it), earn at least £800 a month, an email address and mobile phone.
So… in the most basic sense Safe Loans are a payday lender, however, they are far more flexible when it comes to their loan term.
It is important though to try and pick the shortest loan period if possible as this will keep interest rates low. The longer the period of time you borrow the loan for – the more you will have to repay.
Interested? We advise that you compare payday loans in the market before simply applying. It’s important that you find one to suit your needs.