How to Find the Best Payday Loan
How to Find the Best Payday Loan
There are many payday lenders and choosing which one is the best can be difficult. It is even tricky to sometimes decide which factors are important when you are picking between them. Some of these factors are discussed below in order to help you.
It can be wise to find out exactly how much the loan will cost you. You should be able to calculate this or ask the lender how much they are charging. There can be some big differences between lenders and you could save a significant amount of money if you use one of the cheaper companies. You do need to be careful though as some may have a low interest rate but high fees or vice versa. Therefore, make sure that you are looking at the whole cost and not just one or the other. If you are unsure then contact the lender to ask. You will also be wise to make sure that you ask about how much they charge if you are late to repay. These costs can be significant and even if you are confident that you will be easily able to repay in full, you should keep these costs in mind. Hopefully they will motivate you to ensure that you do repay in full but also they will give you something else to compare when you are deciding which lender to use.
It is really important to make sure that you will be able to afford to repay the loan. Usually with a payday loan there will be one repayment which will be due to be repaid on the day that your receive your pay check. This should mean that you will have the money available to pay it but you will need to make sure that the payment comes out after the time of the day that you are paid. It may be wise to even set it for the day after if there is a risk that you will be paid late in the day. A direct debit will be set up to cover the payment so that you do not have to remember. You may find that there are some payday lenders that will allow you to repay in instalments. This could be more attractive as it will mean that you can spread the cost and make it more affordable. They will charge more for this though as you will be borrowing the money for longer. It could be worth it if it means that you can cover the cost of the repayments and manage your money more easily afterwards. As the money normally goes out in a lump sum then some people can struggle to afford everything else they need to buy that month. This can sometimes end up in them having to get another payday loan to manage.
You may feel that it is important to be able to communicate effectively with the lender. You may wish to be able to speak to them and discuss any queries or problems you might have and get some good answers. Some lenders are better with this than others and so if you have a short list you may like to contact each of them to see which impresses you the most with their response. It is best to contact them using the method that you would expect to use to contact them once you have the loan. You may have to wait a while for a response but if you think that you will normally be in a hurry for an answer and they do not respond quickly then this would be a reason for rejecting them. However, if you contact them by email then it will take longer to get a response than if you call them up.
It can be worth finding out a bit about the lender so that you have an idea of what their reputation is like. It can be good to see if you can find any reviews or comments, perhaps on personal finance websites or message boards so that you can see what others think of them. Do be careful with this though as you are unlikely to find very much in praise of these companies as people are far more likely to feel string enough to leave a comment if they have had a bad experience compared with a good one. Asking family and friends could also be a neat idea as they have no reason to be biased and they will want to help you.
It may take some time to gather together all of this information and it may be that you need the money really quickly. It is worth it though as you could save a significant amount of money and have a much better experience if you pick the right lender. It is therefore best not to panic and make a snap decision but take some time to do the necessary research first.