How to Research the Best Payday Loan

There are many payday lenders and this means that it can be hard choosing between them. If you have had a payday loan before then you will know more about what to look out for in a good lender and may just decide to go with the same lender again. However, if you have not had a payday loan before, you might find it all rather daunting. There are things that you can do though to compare them which should help you to make up your mind.

Compare costs

Something that tends to be most important to borrowers is the cost of the loan. This is not surprising as we never want to waste money by spending more than necessary. It is easy to find out the cost of short term loans as well. Although comparing interest rates may seem like the simplest thing to do, it is actually better to use the calculators on the lenders websites. These allow you to enter the details of how much you want to borrow and how long for and you will be able to calculate how much you will repay in full. If you calculate this for every lender it will allow you to accurately compare them. You may then just be tempted to choose the cheapest one. However, it is wise to be look at other factors as well. You want to make sure that you are getting good value for money and by choosing the cheapest this may not be what you get. Obviously if you have a very tight budget the cheapest may be your only option, but for most people they will have some flexibility on price and will be able to choose between the different options.

Ask people you know

It can be wise to ask people that you know whether they have had payday loans. Asking friends, family and work colleagues will allow you to get information about people’s personal experiences of specific lenders. Hopefully they will have no reason to be biased and you will be able to find out which lenders they would recommend and which they would not. This will allow you to make an informed decision about which you will consider and which you will not. Some people find it hard discussing finances like this, but it is in your interests to do so because you will get valuable information that you will not be able to get anywhere else.

Read reviews
You will find that there are various reviews online about payday loans and these can be useful. You do need to be a bit cautious though about where you read the reviews. Some websites will just compare different lenders and review and rate them. These are handy for allowing you to see which enders are available to choose from but there is a risk in believing the reviews. Most sites like this are funded by commission on the leads they generate form their reviews. This means that they are more likely to recommend lenders which pay them higher commission so be very wary of these. Some review sites are not biased though and you need to try to find these. Look for trusted sources such as personal finance websites or message boards which have reviews by people who have used the loans. Still be careful though as there is always a chance of boas. If reviews look a bit too good, then treat them with suspicion.

Study lenders websites

It can be good to look at the websites of the lenders. The way that the site is put together can give you an impression about the company as well as the way things are explained. You might find some information about the lender as well which could help you to get to know more about them. It might be that you will prefer a lender which has less typos on their website or that comes across as more polite, friendly, helpful or professional.

It is also worth thinking about what qualities you would like to see in an ideal lender. Consider what is important for you and then you can look for these when you are choosing. Consider previous experiences you have had with payday loans, lenders or general banking and what was good and bad. Then you will be able to compare the lenders with this in mind and it will help you to make a decision about which one might be the best for you.

It will take time to figure out which is the best lender for you but the more you look at your options, the easier it will be to think about how to choose between them. It will be worth spending the time doing this though as it will allow you to make a good decision that you will not regret. Hopefully you will be able to find the lender that will offer you the best value for money.

<span class="entry-utility-prep entry-utility-prep-cat-links">Posted in</span> Payday Loans | Leave a comment

Should Payday Loans be Used for Making Ends Meet?

There are many different things that payday loans could be used for. The lenders do not specify what you should use them for, things are very flexible unlike certain loans such as mortgages and student loans which can only be used for certain purchases. However, even though the loans can be used for anything, you need to think about whether it is the right loan for the use that you need money for. For example, if you need to make ends meet then you need to consider which type of option might be best for you in order to help out. You might be able to earn more, use savings or borrow in lots of different ways. You need to consider them all. A payday loan is certainly an option that you might consider. However, if you do not know much about them, then you need to understand how they work so that you can decide whether they will be the right choice for you.

Who qualifies for a payday loan?

With some loans there are strict criteria with regards to who qualifies for one. This means that you may have concerns that you may not qualify for a payday loan. However, they have very few restrictions on who qualifies. They have the normal age restrictions and you need to be a UK resident. You will need to have a checking account and a regular income. Although most loan will require a credit check, a payday loan does not. This means that many people that are unable to get loans from other lenders will be able to use a payday loan and this can be very useful to them.

How quickly can they be arranged?

The loans can be arranged very quickly. They are actually much quicker than many other loans which means that if you need money in a hurry then they can be really suitable. The application process is very fast as you can do it online or over the telephone. Often lenders are available to contact 24 hours a day and over the weekends which means that even if you need the money outside of business hours then it can be possible to get it. Many payday lenders are able to get money to a borrower within a few hours. This is very much quicker than many other types of loan and it means that if you do need money in an emergency, they can be ideal.

How do repayments work?

The repayments can work differently than other loans. Usually you will just need to make one repayment on your next pay day. This means that the loan can be cleared very quickly. You will need to be organised though to make sure that you can manage to repay the loan. You will be able to find out exactly how much you will need to repay by using the calculator on the payday lenders website. You will also know when it needs to be repaid as this will be the next day that you are paid. Then you will be able to work out whether you will be able to afford this. It is worth looking back at previous checking account statements to see how your finances usually are. Think about whether you would normally be able to afford a loan like that and therefore whether you will be likely to this time. Also think about whether you will manage to pay for everything else you need once you have paid for the loan. It is easy to just assume that it will be okay, but it is best to actually do the calculations so that you can be completely sure as to whether you will be able to manage the repayment or not. If you miss the repayment you will have to pay extra charges and if you make the repayment but do not have enough money left to manage on, you may need to get a second loan to help you out again. So, it is important to make sure that the repayments work for you. 

So, a payday loans can be used to help you to makes ends meet. However, it is important to make sure that it is the right option for you. Make sure that you understand the expectations with regards to repayments and calculate carefully whether you think that they will work for you. It is important to spend time doing this and then if you do decide to go with a payday loan, make sure that you compare lenders so that you can be sure that you will be getting the best value for money from the one that you choose. It will take time, but it will be worth it when you know that you have made the best choice for you.

<span class="entry-utility-prep entry-utility-prep-cat-links">Posted in</span> Payday Loans | Leave a comment