Pounds2Day claim to be the UK’s most flexible and reliable payday loan company. A bold claim that doesn’t really hold up too well once you do a little digging.
The interest charged is 35% so a loan of £400 will require £540 to be paid back at the end of the 30 days. Not the dearest on the market but certainly not the cheapest rates around either.
There is also a £15 charge if you want the loan paid into your bank account the same day. How they can justify a £15 fee when rivals QuickQuid will have your money in your account within an hour at no extra charge AND with a much lower interest rate we aren’t sure.
Borrow £100 and request it for today and they will deposit £85 into your account (your £100 less the £15 same day charge). So that £100 will cost you £50 in total – £35 in interest charges plus the £15 same day fee.
The application process is a bit long winded too. As with most payday loans there is no faxing required. You fill out an online application form and receive a yes or no more or less straight away.
You are then sent a text message with a pin number and an email with a link to a page where you have to type in that pin number.
Once that’s done you then have to wait for one of their staff to telephone you to arrange the loan and presumably sell you on the idea of getting the money into your account today.
* must have a valid bank account
* must be at least 18
* must be employed and receive a regular salary
* must be a resident of the UK
* must provide your debit card details
* same day funding involves a £15 charge that is deducted off your original loan amount
The maximum you can borrow as a new customer is £400 but this increases once you have some history with Pounds2Day, up to a limit of £1500
If you run into difficulties and can’t make your loan repayment you can extend it for another 30 days by paying the interest charge. You are then billed the interest again for the next loan cycle.
So for each £100 borrowed you would have to pay back £35 interest charges to extend the loan. Drag the loan on for 90 days and you are paying 105% in interest so as with most payday loans you need to make sure anything you borrow can be paid back in full and on time.
Pounds2Day is an ok payday loan service but there are far better deals and services on offer. A £100 loan with QuickQuid for instance will cost as little as £15 in interest and they will have your money in your account within the hour with no additional charges. The same loan with Pounds2Day will cost you £35 in interest plus a charge of £15 if you want the money today.
It also looks like Pounds2Day run a credit check too which can have an adverse effect on your credit rating.
You can visit the Pounds2Day website by clicking here.
If you prefer to check out the cheaper QuickQuid option then click here for a promo code that gets you a further 30% off.