Moolr.co.uk | Short term loans

2 Year Loans For Bad Credit

Moolr™ offer market comparisons for all with NO obligation to proceed. 2 year loans for bad credit, whatever needs arise.

  • Locate the ideal 2 year loans for bad credit- competitive rates that suit your budget 3
  • We’ll help you with our easy application process
  • Money quickly deposited, often the same day
  • No paperwork, no phone calls
  • 2 year loans for bad credit for every circumstance
  • No charges added on
  • Safe website

2 year loans for bad credit whatever your needs. Discover what Moolr can do for you today, and locate the perfect unsecured 2 year loan today.

Understanding the costs of a 2 year loan

All loan lenders are required by law to display their annual percentage rate on loans, or APR. Traditionally loans offered in the UK were for a year or longer, so this method of comparing rates was not a problem. However, with shorter-term loans it can appear misleading, as repayments do not last for that long. Thus, the the rates look artificially high. It is natural to look at interest rates in the thousands with suspicion, and the industry has received much negative press because of these high interest rates. However, they do not really represent the product on offer, where loans will be repaid in far shorter periods than a year.

In addition to the above, recent regulations introduced to the payday loan industry mean that interest rates have been capped across the board at 0.8% per day. It is often better to simply look at what you have to repay in total and find the best deal that way. These recent regulations mean you can never pay back more than double the amount borrowed and have led to a very competitive market for a prospective borrower.

Other ways of measuring the cost of a payday loan

For many, understanding the high annual percentage rates is very confusing, as an annual rate is of little use for a loan that may well last under a month. Other ways to understand the cost of a payday loan are by comparing the cost per £100 borrowed and the daily interest rate, as has already been mentioned.

To recap: As of 2nd January 2015, lenders are capped on what they can charge. Before the government brought in the new regulations, the average rates charged by payday loan lenders was 1% per day or £130 repayable on every £100 borrowed. With the new price cap, the maximum that payday lenders can charge will be fixed as 0.8% daily interest that equates to £124 per £100 borrowed.

What could make your payday loan a bit cheaper?

Look for cheaper alternatives to a payday or same day loan, and you will discover there are other options available. You will also discover a competitive market. Longer-term loans will offer lower interest rates, You pay off the loan over a longer period though. You may end up paying more in interest overall – it’s just that the costs are spread.

With some lenders, there may even be the option of paying off your loan early, and thus reducing your interest charges – check your terms and conditions.

How do I make repayments on a payday loan?

Repayments for a payday loan will come direct from the borrower’s bank account on the day they next receive a wage. This could be any day of the month, but for many it is the last Friday or last working day of a month. Prior to this date, you may receive reminders by text message or email that the payment is upcoming.

Once you have repaid your payday loan in one lump sum, it means that your loan is paid off in full, and the agreement is complete. If you borrow on an instalment loan that lasts longer you will usually make repayments in equal monthly instalments. This may be on your pay date or you may make one big lump sum payment (less likely) at the end of the loan period. This depends on the terms of the lender and the contract you signed with them.

Collections are made via Continuous Payment Authority

All lenders insist on the bank details of a borrower so that funds can be deposited into their account speedily. This also helps with the repayment, as it is generally made via a process named the Continuous Payment Authority. With it, lenders to automatically take funds out of the borrower’s account. TA simple process,and means you don’t have to do anything more once the agreement is in place. Continuous Payment Authority cannot be cancelled on the customer’s end but can be easily stopped by simply contacting the lender.

Can a loan be repaid early?

This depends on the terms and conditions of the contract you sign with your particular lender. Some of the lenders we feature allow you to repay early and some do not. Please check the terms and conditions on the lenders’ website for confirmation. Some lenders may charge a small fee for such an arrangement, others may not, and you may save money by only paying interest for the days the loan was still active.

Thus, if there are no penalties and you find that you are in a financial position to repay your loan off early, it is a good idea to do so.

Can someone pay my loan on my behalf?

When making repayments on your payday loan, those payments should really only come from your account. Hence the Continuous Payment Authority set-up that collects the funds from you. In special circumstances, you could contact your lender and ask if someone can make payments on your behalf. Though in such situations a guarantor loan may be more suited to your needs. See our section on guarantor loans for more information.

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Summary

2 year loans for bad credit are an ideal way to spread borrowing costs. They also carry a slightly lower risk to those lending than say, a 48 month loan, as there are only a half of the repayments required. Hence, there is a reduced chance of you missing a payment. Our longest repayment term is for 5 year loans.

Let Moolr Guide you Today

Moolr specialise in 2 year loans for bad credit, for those with a mixed history. So if you apply via us, we will find the perfect right for you. A deal it must be stressed you are under NO obligation to proceed with. Take control of your finances today. Sort out financial problems and plan for a simpler future.

To reiterate, proceed with a loan only when you have no doubts about the repayment terms or the period. Sit down, plan ahead, and be in control of your own destiny. Contact us, and read our articles, to give yourself a fuller idea of what is involved. Take control, and demand a brighter future.