Testing the Pingtree. Can it save you time and money in 2019?

Everyone has heard of comparison loan websites but the term Pingtree is still unknown.

Until now;

I will do a real test application using a Pingtree and also explain exactly how the Pingtree works.

According to 1st Class Loans estimations – A staggering 1 million UK applications go through a Pingtree each month. So I think it’s time people know exactly what this is.

Please Note: This blog is NOT to promote payday loans, but to educate people about how Pingtree’s work.

Caught In the Payday Loan Cycle

Don’t stress the debt!

Caught up in a Payday Loan Cycle? Struggling to meet your monthly bills on time?

You may think of taking out a payday loan to cover your expenses. But what if you can’t afford to repay the loan by the deadline?

Many people reach for payday loans to clear outstanding loan repayments, only to find themselves stuck in a never-ending loan cycle.

As the additional loans pile up, they are burdened with more fees and find it a challenge to better manage their finances. Sound familiar?

When you don’t see a way out of this loop, it can become stressful. But keep in mind that simply worrying about your debts won’t take you anywhere.

You should rather develop a plan to effectively manage debts which is why we’ve taken the time to write 5 helpful tips to help you get back on track.

5 steps to help you take control of your finances:

  1. Keep Track of Loans

Writing down a list of all your loans is a good place to start. This will make it easier to decide which option will work best for you to return the loans and help you better understand your overall debt level.

This is easily achievable on an excel spreadsheet, like the example below;

It’s important to remember that obtaining another loan may not be the best solution, so make sure you stop the borrowing cycles. Once the cycle breaks, you can gradually return the amount to creditors.

  1. Prioritise Loans

Assigning priorities to loans can give you a clear idea on which loans should be paid first. Below is a list of examples of priority debts that you should consider;

  • Court fines (CCJs).
  • Council Tax.
  • TV Licence.
  • Child maintenance.
  • Gas and electricity bills.
  • Income Tax, National Insurance and VAT.
  • Mortgage, rent and any loans secured against your home.

 

Failure to pay any of the above in a timely manner can lead to more serious action being taken against you such as a CCJ or even more severe, repossession action.

 

It’s important to contact your creditors to discuss repayment options, instead of simply ignoring them.

 

  1. Understand what is affordable

In your quest for a debt-free life, you may want to clear off the debt as soon as you get paid. But if you spend your entire month’s salary on paying off loans, how would you get by until you receive the next salary?

An effective way to manage repayments, is to understand your household income and expenditure. Expenditure is the amount of money you have left once you have paid for all of your bills and necessities such as travel or food costs.

Understanding your expenditure will you give you a clear idea if there’s any costs that you can cut down on whilst you’re trying to become debt free.

Remember to include any of the priority bills such as CCJs, but do not include in this list your debts. This will give you your disposable income, which is the money you have left over to pay your debts.

Again this achievable on excel as per the below example;

Please see the following useful link to help you understand what’s a reasonable amount of money to include for items such as food etc;

http://www.thedebtmen.co.uk/pre-agreed-expenditure-guidelines/

 

  1. Contact your creditors

Now that you have a clear idea of your financial situation, the next step is to get in touch with your creditors.

You can’t decide to reduce the repayment amount on your own but all financial companies will be able to offer repayment options to help people experiencing financial trouble.

Knowing your debt level and your disposable income, will make it easier for the creditors to understand your situation and how much you can afford to repay – so contact them prepared.

While payday loan providers aren’t obliged to do so, it’s possible that they may agree to freeze interest on your account to help you repay your outstanding balance.

 

  1. Debt Management Plans (DMP)

If you don’t want to contact creditors yourself, you can always opt for a debt management plan where a company will deal with this for you.

In the first 6 months of 2018, Step Change announced that they had 326,897 new clients on debt management plans. It’s important to know that you are not alone in this situation.

A DMP works best for people with a lower amount of debt, but you can opt for it even if you owe creditors a lot of money.

If you have at least 2 lines of credit and you owe more than £1,000 in debt, you can go for this option.

It’s important to note that the DMP negatively affects your credit history. Your credit file highlights when you received default notices or if you have paid less than the monthly agree repayments due to financial hardships.

But it doesn’t mean that you should take out more payday loans and further damage your credit score.

There are plenty of free charging debt management services available, we have listed a few below;

https://www.stepchange.org/

https://www.payplan.com/

https://www.mymoneysteps.org/

Work
CHAPTER 1:

Introduction

When looking for a short term payday loan, being over faced with all the different lenders to choose from can be overwhelming.

  • “How do I get the best rates?”
  • “Which lenders will accept me?”
  • “If I’m rejected, will reapplying affect my credit rating?”

Are all typical questions that many people consider before applying for a quick loan.

Whilst most people may have heard of or even used a price comparison website – a Pingtree service is still unknown.

In this blog I will demonstrate how a Pingtree works, and if it could help save you time and money

Please note: This blog isn’t to promote payday loans, it is to demonstrate how the Pingtree works. Payday Loans should only ever be used as a last resort!

CHAPTER 2:

What is a Pingtree Loan?

 

First off for those that do not know, a Pingtree is a piece of software used by most payday loan broker websites like our website - 1st Class Loans.

The Pingtree software we use here at 1st Class Loans is owned by T.UK which has over 30+ FCA approved lenders plugged in at any time, offering different loan products with various rates.

Pingtree Loans is a term used for loan applications that go through the pingtree software.

Pingtree Loans statistics

  • Around 1 million applications in the UK go through the Pingtree's every month
  • The average Pingtree loan is £300
  • There are Pingtree's in the UK, USA, Australia and Poland
  • There is around 25 Pingtree's in the UK offering short term loans.
  • Around 30 FCA approved lenders plugged into the T.UK Pingtree

All statistics are from research from 1st Class Loans. If you are to use any of these statstics please credit 1st Class Loans with a link to this blog.

Pingtree step guide - 1st Class Loans

CHAPTER 3:

How does the Pingtree work?

Below is a simplified version of the pingtree process.

How does the pingtree work - 1st class loans

Step 1 – Users looking for a loan apply using the 1st Class Loans quick quote form

Step 2 – Your application will be submitted to the secure FCA approved T.UK Pingtree.

Step 3 – The Pingtree will filter your application to make sure it is seen by the right lenders, based on the details you have entered.

  • Application for a £2000 loan, will be sent to lenders who accept loans over £2000.
  • Applications with students as the employment will be sent to lenders who accept students.

And so on…

Step 4 – Once the Pingtree has performed a series of checks for each loan product and all other things being equal, then the application with be sent to the lender with the lowest APR.

Step 5 –The lender at this stage will then carry out a soft search on you, which won’t affect your credit score.

Step 6A - If pre-approved, you’ll be re-directed to the lenders website to complete the application (our job is done).

Step 6B – If rejected by the first lender, here’s where the ‘ping’ comes in; your application will ‘ping’ down to the next lender and so on until a lender pre-approves you (step 6A).

Step 7 – Receive your money from the lender

Step 8 – If no lender is willing to pre-approve you, then unfortunately you haven’t been successful with your application and will leave the Pingtree process.

CHAPTER 4:

FAQs regarding how it works

Here are the most FAQs regarding the Pingtree and your application

What if I don’t get accepted by any of the lenders?

You will leave the Pingtree without a pre-approved loan.

Will I get charged for using the Pingtree?

No, absolutely not. Our services is 100% free to use. You will never be charged for using 1st Class Loans

Will it affect my credit score?

Getting a quote will carry out a ‘soft search’ which won’t affect your credit score. However; if you decide to complete the application with your matched lender, this will lead to a ‘hard check’ which will leave a mark on your credit score.

What if I don’t want to accept the offer?

You are under no obligation to accept the offer shown. If you are unhappy with the lender chosen or the offer provided, then you can re-apply and if approved again you will be matched to a different lender, however, this rate may be more expensive.

Where do my details get stored?

1st Class Loans don’t hold any data, so any data that comes through us gets deleted immediately.

Only the lender you take the loan out with will hold your data in line with the correct FCA and ICO regulations.

Is a pingtree just for payday loans?

No – Most Pingtree’s have different loan products such as:

  • payday loans (up to 1 month),
  • short term loans (3-12 months)
  • guarantor loans.

You will be matched with the right loan product which is best suited for your application and credit.

How long does it take?

  1. Filling out the Quick Quote form – 1-2 minutes
  2. Pingtree ‘matching’ you with a lender – up to 2 minutes
  3. Money transferred to into my account – 10 minutes*- Same day

Total time 15 minutes*

*Money will depend on the lender you get matched with and your bank. This can vary from 2 minutes to 24 hours.

CHAPTER 5:

The Benefits and Negatives of the Pingtree

The benefits of the Pingtree are:

  • Increase your chances of getting a loan if you have bad credit – Your application could be seen by 30+ lenders, instead of applying directly to just one direct lender.
  • Improved your chances of getting a lower rate – With how the Pingtree works it could help you get a lower rate on your loan.
  • Save you time – Customers with bad credit might apply on numerous websites. Applying with 1st Class Loans saves you time, as you only need to fill in one application form.
  • Use of ‘soft search’ technology – getting a quote won’t affect your credit, applying on a direct lender website could do.
  • FCA Approved – 1st Class Loans and T.UK are authorised by the FCA
  • It is Free – It is 100% free to use 1st Class Loans and the Pingtree

The negatives:

  • Unheard of – The Pingtree is still very unheard of which might put people off.
  • Bad press – There has been negative press in the past with a couple of articles. However; these articles were written before the FCA regulations came into place which changed the payday loan industry, so a lot of the points aren’t factual anymore.
  • Loan Brokers – Not sure if this is a negative as brokers can usually save you money but some customers don’t like using 3rd parties and prefer going direct to the lenders.

As you can see the benefits out ways the negatives.

CHAPTER 6:

Testing the Pingtree

Let’s put the Pingtree to the test.

Payday loans are still in high demand, with people usually struggling the last week before their payday, and therefore requiring a small loan to bridge the gap.

The average payday loan in the UK is around £300, so let’s test the Pingtree with a £300 loan which we need to pay back in 1 week.

Apply online at 1st Class Loans

I completed the application form and clicked ‘get my personal quote’

Waited around 1 ½ minutes while the Pingtree did its magic and;

Success.

We have been pre-approved and redirected to SafetyNet Credit’s website.

I’ve done some research and SafetyNet Credit work different to other lenders.

They are a credit facility and work by automatically depositing a top up to your bank account when your balance gets low, to prevent you from going overdrawn and potentially being charged.

You set the amounts within your account settings and this can be changed at any point.

SafetyNet credit has a fixed rate for all customers of 68.9% APR.

For our £300 loan paid back in 1 week it will cost me:

  • £300 loan
  • Interest for 1 week is £16.80
  • Total Repayable 1 week later is £316.80

To get the quote did it carry out a soft search on my Credit file?

Yes, please see screen shot below that shows that Indigo Michael LTD carried out a soft search on my credit score. Indigo Michael LTD are the owners of SafetyNet Credit.

Pingtree credit score

As clear score states – "Searches listed here are only visible to you (not to lenders) and do not affect your credit score"

CHAPTER 7:

Conclusion for the Pingtree

The purpose of this blog was to let people know about loan Pingtree’s, not to promote payday loans.

There are several benefits to using a Pingtree website like 1st Class Loans.

They are free to use, you do have a higher chance of approval and you could save money using them.

But we can’t stress this enough, payday loans should be used as a last resort.

If you are struggling with payday loan debt, we’ve written a 5-step guide on how to help pay off payday loan debt along with providing links to some of the leading debt charities for support.