Payday Loans APR Explained
By law Instant Payday Loan providers must display their APR along with all other credit providers.
We appreciate that a four-digit APR number may look daunting. But we'll explain exactly what the APR means.
The Annual Percentage Rate (APR) is an annualised calculation and is a common method of comparing money that is loaned over a period of at least 12 months. By law all credit providers have to display this figure.
However, payday loans are set for a period of 31 days not a year so it's not surprising the APR for payday loans seems so high. To give the interest rate for payday loans in this normalised Annual Percentage Rate, the interest rate for 31 days must be compounded many times over, thus generating the enormous APR figure.
Typically, when you borrow £100 for a period of 31 days, you will have to repay a total amount of £130 (the original £100 plus £30 in fees). Payday loans are meant to be short-term emergency loans, you should not use payday loans to borrow money for a term anywhere close to a year in length.
The bottom line is this: make sure you understand how much you will owe at each point in time (each month). Pay off your loan as quickly as you can. At Top Hat Money, we want to make sure that you understand exactly how much your loan will cost. Read more information about our Instant Payday Loan Cost.
Apply Now Via Our Instant Payday Loans Application Form
Life's demanding and can be unpredictable.
Whatever your situation Top Hat Money payday loans are here to help.
New customers can request payday loans of up to £1000
Once approved cash is directly deposited to your account within 1 hour!
Representative 2120% APR
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