How to Find the Best Interest Rate When Taking Out a Personal Loan

The criticism is aimed at those companies offering short-term, instant loans to customers looking for a quick-fix of cash for a short period of time. But are they really as bad as they are made out to be?

Back along, loan sharks preyed on the vulnerable, lending large amounts of cash, without checking a victim's ability to re-pay and then charging extortionate amounts of interest when regular payments were not met. Furthermore, loan sharks terrorised neighbourhoods, were often involved in illegal drug-related activities and resorted to acts of extreme violence in order to redeem their 'investments'.

The high street pawn-broker offered little more to an individual, struggling to meet the demands of a financial crisis or in need of a quick injection of cash. More often than not, the pawn broker would offer the customer a fraction of an item's value in order to make money out of somebody else's poverty and despair.

Hire purchase schemes and mail-order catalogues offered low-income families the opportunity to buy bigger and better, all on the 'never-never'. Interest rates were over-inflated and goods were over-priced. Repayments were advertised in pence per week, making the purchase seem insignificant and affordable.

These days, under the scrutiny of the internet and media, modern-day lenders need to meet stringent guidelines on who they lend to, how much they will lend and need to set out clear and concise repayment terms, all before the customer applies for the loan. So have pay-day loans companies finally found a way to clean up one of the oldest professions?

Lenders need to be licensed by the Office of Fair Trading. Advertising of these loan companies is scrutinised heavily by the Advertising Standards Agency and adverts are also subject to the Consumer Credit (Advertisements) Regulations 2004. All of this, combined with a policy to be up-front with fees and loan interest rates, means that the industry has never been so clean or regulated.

Many of the on-line loan companies operating today use state of the art technology to make lending quicker, simpler and more effective. Their clients can finally approach a range of lenders safe in the knowledge that they do not have to barter their goods in exchange for a pittance of cash, will not become the victim of over inflated goods or hidden interest rates and will have the safe and secure knowledge that their loan can be repaid in a fixed, mutually agreed term.

But more than this, customers can finally borrow money on a short-term basis without the threat of violence or intimidation hanging over them.

One of the leading UK payday loans comparison sites for those looking for a short- term, no-hassle loan. We have brought together all of the options for short-term borrowing into one, easily navigated site. Couple this with an impartial view of the market and My Money Credit can offer customers the most cost effective way of securing a short-term loan that is absolutely right for them.