Lender in Focus 4.4: QuickQuid APR and how repayments work

QuickQuid APR

QuickQuid APR

QuickQuid APR is a good place to start when you want to compare QuickQuid’s interest rates with those of other lenders.

When you are choosing a short-term loan provider, it is important to fully understand what their costs will be and what your repayment options are. This will help to ensure you are getting the best loan for you.

CashLady takes a look at QuickQuid APR to find out if consumers are getting a good deal.

Payment schedule

If approved for a loan, QuidQuid offers you the ability to repay your loan back over 1, 2 or 3 instalments, known as payment periods.

1-Period Loan

This type of loan only has one repayment date. On this date, you will owe your loan amount plus the accrued interest.

2-Period Loan

QuickQuid’s 2-period loan is a type of instalment loan with 2 repayment dates. On your first payment date, you will be required to pay back the interest that has accrued on your loan amount to date.

On the second repayment date, you will owe the total amount you borrowed from QuickQuid. That is, together with the interest that has accrued between your first repayment date and your second repayment date.

3-Period Loan

Again, this is a type of instalment loan but this time with 3 repayment dates.

On the first repayment date, you will owe the interest that has accrued to that date. You will then be required to repay the interest accrued between your first and second repayment dates on your second repayment date.

On your third repayment date, the total loan amount you borrowed, plus interest accrued between your second and third repayment dates, will be due.

You will be sent an email reminder from QuickQuid a minimum of 3 days before each repayment is due.

Repayment dates are always set to your pay dates.

Sometimes, customers will not be eligible to apply for each period option. This is largely depending on pay date frequency and QuickQuid’s minimum loan term of 27 days.

It is important to be aware if you opt for a multi-period (instalment) loan, your final payment will be larger than your initial payment/s. You should remember to budget for this.

How are repayments taken?

You can link your debit card for repayments via continuous payment authority (CPA). Or, you can authorise direct debits from your bank account.

Repayments will then be collected from your chosen repayment method on the dates specified on your contract.

Your loan will not be given to you until you have authorised a repayment method.

How much will my repayments be?

QuickQuid will calculate your repayments by taking into account how much your want to borrow. Along with, what period of time you would like to repay your loan back over.

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

QuickQuid allows you to repay your loan early at no extra cost.

If you do choose to repay your loan before your repayment date, you may save money on interest because your interest is charged daily. Also, you will only pay interest on the number of days you have had the loan for.

Can I change my repayment date after I have taken out a loan with QuickQuid?

Repayments dates will always be on your payday.

If you require a few extra days to repay your loan, you may be able to apply for an extension. You should be able to see if you are eligible to apply for an extension to your loan by logging into your account online.

If you are approved for an extension, the interest which you accrued on your original loan will need to be paid off on the original repayment date. The repayment of your loan principal is then able to be moved to a later repayment date.

On the new payment date, you will need to repay your principal loan together with the additional interest that has accrued. You are only able to apply for 2 extensions per loan.

Table of borrowing

In the table below, you can see some examples of what you could expect to pay back with QuickQuid.

QuickQuid table of borrowing

What is QuickQuid APR?

APR means Annual Percentage Rate.

By looking at the QuickQuid APR, you are able to compare their interest rates with the interest rates of other lenders.

QuickQuid’s representative APR is 1295%.

How does QuickQuid APR compare to other lenders’ APR?

So you can compare the QuickQuid APR with the APR of other lenders, CashLady has picked a few short term lenders at random:

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 the interest.

The Money Shop

The Money Shop has a representative APR of 450%.

For example: If you took out a loan of £100 and paid it back over 3 instalments, you could expect to repay a total of £136.98.

Lending Stream

Lending Stream has a representative APR of 1272%.

For example: If you borrowed £200 over 6 months you would repay £391.68 in total.

QuickQuid daily cap

QuickQuid’s daily interest rate is 0.8%. This means for every £100 you borrow, you will pay 80p per day in interest.

Total loan value repayment cap

FCA-authorised and regulated firms, such as QuickQuid, must meet these criteria:

•   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.

Consequentially, you should never pay back more than 100% of the amount you borrowed from QuickQuid.