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.
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.
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.