Everyday Lending is a UK-based lender that offers personal loans to individuals. It is a trading name of Everyday Loans Limited, which is regulated by the Financial Conduct Authority. The company has been in operation since 2006 and claims to have helped over 150,000 customers with their lending needs. In this article, we take a closer look at some of the claims made by Everyday Lending and assess their accuracy and relevance.
Claim: We Offer Loans to People with Bad Credit
Everyday Lending prominently advertises on its website that it can help people with bad credit get a loan. The company states that it understands that not everyone has a perfect credit history and that it is willing to take a chance on those who have had financial difficulties in the past. While it is true that Everyday Lending does offer loans to people with bad credit, it is important to note that the interest rates are higher than those offered to people with good credit. This means that the cost of borrowing for those with bad credit is higher, and they need to evaluate whether taking out a loan is the best option for their financial situation.
Claim: We Provide Personalized Loan Offers
Everyday Lending claims that it provides personalized loan offers to its customers. The company states that it takes into account the individual circumstances of each customer and offers loan terms that are tailored to their needs. While it is true that the company does assess each application on a case-by-case basis, this does not mean that the loan terms are personalized in the true sense. The majority of customers will be offered similar loan terms, which are based on the amount borrowed, the repayment period, and the creditworthiness of the customer.
Claim: We Have High Approval Rates
Everyday Lending promotes its high approval rates on its website. The company states that it approves a high percentage of loan applications, even from those with bad credit. While it is true that the company has a higher approval rate than some other lenders, it is important to note that not all applications are approved. Everyday Lending still has strict lending criteria, and it will only approve loans for customers who can demonstrate that they can afford the repayments. Those who have a history of missed payments, defaults, or CCJs (County Court Judgments) may be declined.
Claim: We Offer a Simple Application Process
Everyday Lending markets its loan application process as simple and straightforward. The company states that customers can apply online or by phone and that the application process is quick and easy. While the initial application may be straightforward, the company still needs to carry out rigorous checks to ensure that the customer can afford the loan. This may involve requesting additional documentation, such as bank statements and payslips, which can prolong the application process and make it more complex.
Claim: We Are Committed to Responsible Lending
Everyday Lending emphasizes its commitment to responsible lending. The company states that it wants to help customers who need a loan, but it also wants to ensure that customers do not take on more debt than they can comfortably afford to repay. While these are admirable goals, it is important to evaluate whether the company is meeting them. Everyday Lending does offer loans to people with bad credit, but the interest rates are high, and customers need to evaluate whether they can afford the repayments. The company also conducts credit checks to ensure that customers do not have an excessive amount of debt, but it is worth noting that this may not be a foolproof way of preventing customers from taking on too much debt.
Conclusion
Everyday Lending claims to offer loans to people with bad credit, provide personalized loan offers, have high approval rates, offer a simple application process, and be committed to responsible lending. While there is some truth to these claims, it is important to evaluate them in the context of the company’s overall business practices. Everyday Lending does offer loans to people with bad credit, but the interest rates are higher than those offered to people with good credit. The company does provide personalized loan offers, but the majority of customers will be offered similar loan terms. Everyday Lending does have a higher approval rate than some other lenders, but not all applications are approved. The application process may be straightforward, but it can still be complex and prolonged. Finally, the company does claim to be committed to responsible lending, but it is important to evaluate whether it is meeting this goal.