Why they might be the cheapest and fairest of the “Alternative Credit” products
When looking for a loan there can really be just one question; can I borrow from a mainstream lender (bank, building society or Hire Purchase specialist) at low, headline, rates of interest? If the answer is yes, then you don’t need alternative loan providers at all; they will be far more expensive and you should approach your bank.
If, however, you can’t borrow from this source then consider carefully where you might borrow those needed funds, your ability to make the repayments (affordability) and how spreading the loan over a period of smaller fixed payments might help your personal circumstances.
And then look at the real costs of borrowing.