What Features For When Choosing The Best Payday Loans
If you are looking for a payday loan then it important to make sure that you choose between the best payday loans for you. This sounds like it makes perfect sense but once you decide this you then have to think about what features the best lenders have so that you can identify them. It is all very well going to a lender you have seen advertised, that is recommended by a credit broker such as Boutell or comes up as cheapest on a comparison website, but are these the best way to judge a payday loan? It is important to give this some thought before you go ahead with borrowing.
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).
Identifying the Features That You Want
So the first thing is that you will need to identify what features you want in a payday loan. If you have had one before then this will probably be pretty straight forward as you will just have to think about what you liked and disliked about that loan and you will be able to come up with a list of what you want. However, if you have not had a payday loan before this could be harder, but there are things that you can do to help you to decide.
- Think about past borrowing experience – If you have borrowed money that was not a payday loan you will have still had some experience of what it is like to owe money and have to repay it. This should give you some ideas as to what you might want or not want in a payday loan. If you had a positive experience then you might want a similar one, but if you had a negative experience then you will want to find a lender that is quite different to the one that you had before.
- Talk to others about their experiences – It can be a good idea to find out if anyone you know has had a payday loan online and can chat to you about it. Find out form them what to expect from a payday loan and you will begin to understand what might make a good and bad borrowing experience. You could even chat to them generally about all their experiences of borrowing and find out any general information that they can give you that might be useful.
- Look at online forums – If you have no one to ask or want to look further then you may find that there are some online forums or message boards where you will be able to get some help. You could leave a message asking people to give you details of their experience or you may have more specific questions that you want to ask. Otherwise you could just read what is there and learn from what others are discussing. Make sure that you look at a selection though and then you will get a broader range of information.
- Look on lenders websites – It can be really wise to take a detailed look at the website of the lender that you are considering. You will be able to find out a lot more about them and the loan that you are considering. This should help to give you some extra information and you will be able to think about whether there are any features that they mention which may or may not be important to you when you are choosing you ideal loan and lender.
Finding Those in a Lender
Hopefully you should be able to finish your research with a list of things that you want from your same day loan. It could be that you want it to be cheap, to be able to lend you thousands of pounds, has long repayment terms which mean repayments are low and manageable, has good customer service r something else. There are many features which could be important to you and hopefully you will now be confident in what they are. This is just the first stage though as you now need to find a lender that can offer you what you want so that you can apply for the best payday loans.
This may not be as easy as it seems. Although some things will be obvious, such as if the lender is well-known or can lend you the amount you need, it will take a little longer to work out the cost and may be even trickier to identify what the reputation of the lender is like. It might therefore be worth taking a step by step approach with the initial things being easier to find out than the later things.
- Are they well-known? – You will know straight away if you have heard of the lender and if this is important to you then it is an easy thing to find out. You will be able to eliminate all lenders you have not heard of and it is likely you will substantially cut down the list of possible candidates.
- How much will they lend? – You need to make sure that they will be able to lend you all of the money that you need. You should be able to find out from their website really easily how much they lend. Although you will not know yet, whether they will be prepared to lend that much to you, at least by knowing they can potentially lend that much, you will know not to eliminate them.
- What will they cost? – Cost is often fairly easy to find out. Often payday lenders will have a calculator on their website where you will be able to find out how much you will repay when you enter details of how much you want to borrow and how long for. Although this will take a little time to work out, it should be straightforward.
- What do we know about the lender? – If you want to use a lender that you trust then you might want to find out more about them. There might be information on their website that you will be able to use. This might include a history of the company, when they were set up and things like this. If you cannot find it on their website then you might be able to find it elsewhere online if you check using a search engine.
- What is their reputation like? – You might want to see whether the lender has a good reputation with its past customers. There might be reviews on their website that you can look at and you might also want to search online. You might find that there is information on personal finance websites and blogs as well. It can be harder to find this information and you may have to look in more than one place. This is why this is at the bottom of the list as you will have eliminated some potential lenders by this stage so will not have to search for details on so many lenders.
It is worth noting that the list above is just an example. You may have completely different things that you will want to investigate. It is important to make sure that your list is personal to you and what you are looking for in a quick loan. You should spend a bit of time pondering this and then you will be able to do your research and hopefully identify the very best payday loans to suit your needs. Often when we are searching for payday loans we are in a hurry. They are very suitable for those who need money in an emergency but this can often mean that we either need the money so quickly we do not think we have the time to do the research or we are in such a state of panic that we cannot think straight. It is perfectly natural to be like this, but it is so important to do research. It can even be wise to have a bit of a think even if you do not need a loan at the moment to think about what you might want if you took one out in the future. This might seem a little odd, but there is a lot to gain form being really well prepared. It is not negative to imagine you might need to borrow money, but it is great to plan for the worst and then hope for the best. So hope your finances stay good and you do not need a loan, but know what you will do if you do need to borrow and be well prepared so you will not need to panic and you will have some of the research work done already.