Getting Extra Money Before Payday With Direct Payday Lenders
If you are desperate for money and are looking for fast loans today then you may wonder what your options could be. Many might turn to direct payday lenders as the answer and not think further than this. However, there are more options than that and it is important to think about which might suit you the best. Then you will be able to make sure that you are not just choosing the first thing that comes to mind but making a considered and informed decision.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
There are many alternative options, although some may not be available to everyone. It is good to make sure that you consider them though as you do not want to regret making a quick decision that turns out to be the wrong one. Examples of a few of the possible options you could consider follow. There may be other options you could think of and might want to investigate as well.
- Salary Advance – Some companies will allow their employees to get an advance on their salary in some circumstances. What happens is that they allow them to have a percentage of their salary early. This could be that they will give them half their salary after two weeks work and the rest on their normal payday after a month. It is something that will not be offered by all companies, but it can be worth asking about it at the one that you work for. It would probably only work for permanent employees with contracted hours though and probably only outside of a probation period.
- Use Savings – Some people have savings but do not think about using them when they need some extra money. It can be wise to consider doing so though as savings are likely to be earning less interest than you will pay to direct payday lenders or in fact any lender for a loan. Many people think that it is better to keep savings as they are earning interest, but if you are making a purely financial decision then check the interest rates and it is most likely that your savings are paying you less in interest than you would pay for a loan. The decision is often more emotional though. This is because people do not want to part with their savings for a variety of reasons. It might be because they are saving up for something specific and they do not want to have to start again, they might like the peace of mind of having savings or they may just have found it so hard to build up the savings that they want to keep them now that they have them. It can be very hard to take away our emotions when making a decision like this but it is wise to try to if you can.
- Earn More – It could be possible for you to earn more money so that you can use that you pay for what you need as an alternative to direct payday lenders. This is not always an option as you will need the money very quickly. If you try to do overtime in your job, for example, then the money will not arrive until your next pay packet in most cases, which means that you will not get it soon enough. However, if you can pick up small jobs that pay quickly, perhaps some online work or temp jobs, this could help you. You might also be able to get more money by selling things that you own but no longer need. There are lots of places that you can use to do this such as car boot sales, online auctions or social media pages and this could give you a lump sum of cash fairly quickly. You may also benefit from spending less money on other things, which might be able to help you cover the cost of the items that you need that you are considering borrowing money to pay for. We all have spending commitments that we cannot move away from but often we also pay for things that we could go without. These could be the items that could be held back on to free up the money that is needed.
- Alternative Lending – As well as considering direct payday lenders, it is worth thinking about alternative lenders as well. If you need a fairly small amount of money and pretty quickly, then you probably have a few alternative options such as credit cards, overdrafts and perhaps short term loans. These are all very different but all have one main thing in common which is that the lenders have high standards with regards to credit checks and if you do not have a good credit record you could find that you have a problem with getting approval. Credit cards and overdrafts also have no formal repayment schedule and this means that they could potentially take a long time to repay. The longer it takes to repay a loan, the more expensive it potentially is.
It is also worth noting that as well as direct payday lenders you can also find payday lenders that you can approach through credit brokers such as Boutell or comparison websites. There are advantages and disadvantages of using these lenders.
- Price – A direct lender has the potential to be cheaper because comparison websites and credit brokers take commission on leads and that has to be added on to the costs of the loan. However, direct payday lenders will have to find a different way to get known and so it is possible that they will choose to use the money they save to pay for advertising. They may also just decide to take a higher profit. Therefore, you should be careful to continue to compare the costs of the different payday loans whether direct or not, to be sure that you know exactly what you are dealing with.
- Choice – Not all weekend payday lenders deal directly with customers. This means that if you decide to only use them, you will be ignoring lots of other options or possibilities. You could end up with a lender that does not offer you such good value for money because you have not looked and compared all of the lenders.
- Speed – If you need the loan really quickly then it could be easier to use a credit broker. They will take some details and very quickly match you to a lender. A comparison website can also be fairly fast as they will list the lenders by cost and it will be up to you to choose the most appropriate. However, if you go for a direct lender, then you will have to do the comparison work for yourself and this could take valuable time. You may, of course, just decide to go with the first lender that you come across, but this is risky as you may not know anything about them and may end up paying more than necessary for a service that is not as good as you were hoping for.
When you need money you will have a lot of complex decisions to make. Not only will you need to find that money that you need quickly, but you will also need to think about where to get it from. It is ideal to try to find the cheapest way to get it, but if you decide that lending is the answer then you also need to consider that you need good value for money as well. It is wise to think about what you want from a lender as well as price. For example, it is important to make sure that you will be able to manage the repayments and lenders will vary in how much you need to repay and how often. You will end up repaying more money if you have more repayments but it could be worth it if it means that you will be able to manage the repayments more easily. You may also want to find out a bit more about the lender and see whether there are any reviews or ratings of them that you can look at. It can also be wise to look at their website as this will give you a feel of what they are like. If customer service is really important then speaking to them and getting a feel for how polite and helpful they are, can also be very helpful too.
This is a lot to check out, but if you have the time it is worth it as it could make the difference between you having a positive or negative experience. If you do not have enough time to do all of this then you could just prioritise the most important factor for you and then investigate this. Alternatively, you could use a credit broker such as Boutell and see whether they can help you with it.