APR explained
We agree that our APR number looks massive – let us explain it!
Other lenders get up to all sorts to try and make their APR look lower. High street banks try to make their charges seem low by showing them as daily charge - what some banks charge. We all know that what it actually costs and how clearly this is shown is what really counts. We believe that showing you this before you apply is fair and open. Also at speed-e-loans.com, we do not penalise customers who have a less than perfect credit history.
APR can be confusing
Speed-e-loans.com is a short term lender, our loans are not intended as, nor should ever be used as a long term financial commitment, so to compare them to other long term loans like a mortgage is not comparing like with like...
Imagine if you wanted to rent a small car for the weekend and you were faced with this...
The actual cost of this motor vehicle is £6,995. If you rent it and keep it continuously for one year the Annual Rental Rate is £14,691.25 including VAT and you will not own the vehicle at the end. You are obliged to pay for all damage up to £500 from your own resources.
Important facts about APR
APR stands for the Annual Percentage Rate of charge and 'representative APR' is the rate that applies to at least 51% of successful applicants. APR is a government imposed way of calculating annual interest designed to compare the cost of loans, and this can produce distorted results for the sort of short term help speed-e-loans.com can provide. The APR equation takes a typical speed-e-loans.com cash advance of less than a month and then multiplies and compounds month on month many times over. Look what the boffins here at speed-e-loans have to do when we calculate APR. You can see more on the financial jargon page.
