Why shopping around for credit can damage your credit score
If you shop around for a loan or credit it may leave a ‘footprint’ on your credit file. And that could be bad news.
If you shop around for a credit card or loan before you sign up for one, be careful about the kind of 'search' that's carried out on your credit file. A search means that a credit company (or sometimes an insurance company) has looked at your credit file, either to check your identity or to see whether you're a good or bad credit risk. In some cases, this may show up on your credit file.
What are your rights if you take out a payday loan?
If you need money quickly, a payday lender may seem like a good option. But be aware that they charge interest of up to £24 for every £100 you borrow for a month. And if you can't pay back your loan, there could be other charges as well.
Interest on payday loans has been cappped at 0.8% a day or £24 for every £100 you borrow over 30 days
This interest rate cap also affects the total amount you'll have to repay on your payday loan
The interest rate that payday lenders can charge has been limited to 0.8% interest a day from January 2015. That works out at £24 in interest for every £100 you borrow over 30 days. Importantly, if you borrow from a payday lender, you will never owe more than twice the amount you borrowed - even if you get behind with your loan.