Lender in Focus 9.4: MYJAR APR and how repayments work

MYJAR APR

MYJAR APR

MYJAR APR is a good place to start if you want to compare MYJAR with other lenders.

It is important to ensure you fully understand the costs involved before taking out any finance. Loan providers who offer credit options should always inform you of what their APR is, so you can easily make cost comparisons with other financial providers.

CashLady looks at the MYJAR APR and finds out how repayments work, to see what kind of deal consumers are getting.

Payment schedule

MYJAR offers flexible short and long-term credit options.

Both new and existing customers can apply to borrow from £100 up to £3,600.

MYJAR operate what they call a ‘ladder’ system.

Consumers can move up the MYJAR ladder by repaying their loans on time.

MYJAR has a minimum loan term of 3 months and a maximum term of 12 months. How long your loan term will be, depends on how much you borrow.

Your MYJAR credit score will determine which ‘jars’ you can access and how much you can afford to repay per month. You will need to apply to see your personalised ‘jars’.

There are 3 ‘jars’. These are the 3 different levels of the ‘ladder’.

The first ‘jar’ allows customers to borrow up to £900 for 3 months, at a rate of interest of 0.75% per day, totalling 75p per day per £100 borrowed.

The second, allows borrowing of up to £1,800 for 6 months, at an interest rate of 0.65% per day.

The final ‘jar’ has a loan term of 12 months and customers can borrow up to £3,600 at a rate of 0.35% per day.

You will repay your loan monthly, usually on your payday. If you are paid every one or two weeks, MYJR can schedule the repayments to be on a four-weekly cycle.

If you are approved for a loan, you will receive your full repayment schedule in writing, so that you will know exactly when you are due to pay back your finance.

Your repayments will consist of both loan capital and interest.

How are repayments taken?

After an agreement has been reached about the best time of the month for you to make your repayments, MYJAR will then take the payments from you using a Continuous Payment Authority (CPA).

CPA is a process through which automatic payments can be taken from your debit card. MYJR says customers will be told a minimum of a day before a payment is taken.

If you apply for finance with MYJAR, you will need to give them your debit card details and confirm you are happy for them to take your repayments via CPA.

If you want to make additional repayments outside of these arrangements, you can do this via your online account, text or telephone.

MYJAR will only attempt to take payments using CPA a maximum of two times for any loan. If both attempts are unsuccessful, it will be your responsibility to arrange payment to MYJAR.

You can cancel CPA at any time but if you do this you must make other arrangements to make your repayments on time, as late repayments could cost you more.

How much will my repayments be?

Your repayment amounts will depend on how much you borrow and the term of your loan. If you are approved for a loan, MYJAR will inform you in writing of how much your repayments will total and which dates you will be required to pay them.

Will I be charged less if I repay my loan early?

If you pay your loan early

The sooner you repay your loan, the less it may cost you. This is because you only pay interest on your loan for the days that you have had it.

Can I change my repayment dates after I have taken out a loan with MYJAR?

Repayments are scheduled on your payday. However, you have the option of repaying your loan early (in part or in full) and only paying for the days you have borrowed.

If you would like to change your repayments dates, you can call the MYJAR customer service team on 020 3006 2000 and they will try to help.

Table of borrowing

The table below contains examples of what you could expect to pay back with MYJAR:

Loan amount3 months6 months12 months
£100.001£148.02N/AN/A
£500.00£740.11£890.94£902.26
£1000.00N/A£1781.89£1804.52
£2000.00N/AN/A£3609.04
£3,000.00N/AN/A£5413.56

What is the MYJR APR?

APR means Annual Percentage Rate.

The MYJR APR is a good way to compare MYJAR’s interest costs with those of other lenders.

MYJAR’s representative APR is 788%, although not all customers who apply for finance with MYJAR will get this rate.

How does the MYJAR APR compare to the APR of other lenders?

CashLady has picked some lenders at random so that you can make a comparison:

Lending Stream

Lending Stream has a representative APR of 1325%.

For example: If you borrowed £200 over 6 months you would repay £383.68 in total.

Quickquid

QuickQuid’s representative APR is 1295%.

For example: If you borrowed £200 for 84 days, you could expect to repay a total of £334.40, including interest of £134.40.

PaydayUK

PaydayUK has a representative APR of 1169%.

For example: If you took out a loan of £100 for 2 months, you could expect to pay back a total of £132.72. £32.72 of this would be interest.

MYJAR daily cap

The daily interest rate you will pay to take out a loan with MYJAR ranges from 0.35% to 0.75%, depending on your loan term and the amount you borrow.

Total loan value repayment cap

MYJAR is FCA-authorised and regulated and therefore must adhere to these rules:

  • Fees and interest per day must not exceed 0.8% of the amount borrowed
  • Default fees must not exceed £15, although interest can still be charged after default (but only at or below the initial rate)
  • Borrowers will never pay more in interest and fees than 100% of the total amount they borrowed.

As a result, MYJR says that you should never pay back more than 100% of the amount that you borrowed from them.