If you want to just borrow £100 then it can actually be quite tricky to find a lender. You will find that most conventional lenders will only give fast loans for much larger amounts of money. The only way that you could borrow such a small amount from them would be to use a credit card or an overdraft. These have some big disadvantages though :-
The first three things all mean that you have to have really good self-control if you want to restrict your borrowing. You will need to make sure that you only borrow the amount of money that you need and do not borrow any extra. It is likely that you will have a credit limit that is higher than the £100 that you need and so you could be tempted to borrow a bit extra. You will have no fixed repayment schedule. With the credit card you will have to repay a minimum but not the full amount that you owe and so you could end up with having the debt outstanding for a long time. With the overdraft it will repay as you put money into the account, but if you do not do this very quickly, you could end up paying a lot in fees. Once you have the credit card or overdraft facility it will always be there for you. Although this could sound good, it means that you will have to be careful that you do not just spend the money because it is there and end up running up expensive debts. Lastly, you need a good credit record to get these, which means that it is not an option for everyone.
Therefore there are many people that would be better off with a short term loan if they want a £500 loan. The loan will have a fixed repayment schedule; it may be one lump sum repayment or a series of repayments which will have to be repaid on certain dates. This means that you will have to make the payments until the loan is paid off and it will not last very long. You will also not be offered any more money until you have paid this loan off. This means that it is harder to be tempted to borrow more than the amount that you need. There is also no credit check with a short-term loan. This means that you will not need to worry if you have a bad credit record as you are still likely to be accepted for the loan.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
Once you have decided which type of loan, then you will need to compare the lenders to see which is the best. It is important to do this because you could end up saving a lot of money and getting a better service as well as more favourable repayment terms if you choose the right lender. There are many short-term lenders these days and so you may find it tricky to work out which will be the best. This is where Omacl can help as they will send your details to a selection of lenders and let you know which would be willing to give you a loan and then you will have a short list to look at, so that you will find it easier to check which will be the best one for you. Think about what features will be the most important to you, perhaps the cost, the repayment terms, the customer service or whatever. There are quite a few things that may be important to you and it is good to think about them and make sure that the loan you choose matches up. For example the cost might be the most important, but you may feel that you would rather repay over a longer term and so be willing to pay a bit more for this. Or you might want to go with a lender that you have heard of and are willing to pay more for that. So think about what matters most to you and make sure that the loan that you pick will fit in with them.