Sometimes the APR rate, when taking out a loan, can appear higher than expected. There can be a few reasons for this. When applying for a loan, your credit score is checked from the information you provide and sometimes will impact the APR rate set by lenders. Lenders want to protect themselves from possible non-repayments. So, the lower your credit score, the more risk for the lender.
While some payday loan lenders will give lower-interest loans for a short length of time, it is more advantageous and profitable for lenders to offer greater sums for a longer period of time. This will save you money while simultaneously making a profit for the lenders.
The Financial Conduct Authority (FCA) supports the regulation of lenders. They require all loan lenders to meet their obligated guidelines. FCA declare that the APR and Interest rates on loan offers must be specified within the application.