TIPS: ADVANTAGE OF REPAYING WITH DAILY INTEREST
Most pawnshops in the UK will impose a minimum monthly interest rate on any given loan. Cash loans are more forthright when it comes down to the repayment process, since you will be paying a set of sums back every month, for a predetermined number of months. Generally, the amount to borrow and within which period do you plan on reimbursing depend on the value of your items.
Let us imagine a scenario where you need to purchase a gift for a loved one and need money on the spot because your work pay is only in 3 days. So you search around the house and find some of your old jewellery laying in a small box covered with dust. Then, by searching the internet for gold price and pawn loans, you come across a few options and get an overall idea of how much you could get for your item.
Only thing you notice is that, out of every available pawnshops in the city of London, only Fast Credit offers daily interest.
Say you present yourself at the counter and hand out your items to the representative who will complete the valuation process. After close examination, the following offer is proposed to you; 500£ with an interest rate of 4.99% and your daily amount will be 0.8. Therefore, if you had planned to return the loan in 3 days, calculate 0.8 x 3 = 2.4£ (this being the total amount of interest you actually paid). If the minimum was settled on monthly interest, pretending that the rate is similar, 0.8 x 30 = 24£. As you can see for yourself, retrieving your items to pawnbrokers will save you 21.6£ from the get-go.
This formula is ideal for those who seek short-term loans with the intention of paying back swiftly. It gives borrowers better flexibility and a lower risk from wasting your money on unnecessary monthly interest.