There are many payday lenders offering loans and it can be confusing knowing which of the loans will be the best. If you are in a hurry to get your money, or are not sure about how to compare them, then it can be even more difficult. However, there are things which will probably be important and it is worth, considering whether they are important to you and then looking into them so that you can find the loan that suits your needs the best.
The cost of a loan is a really important factor. Obviously, you do not want to pay more than you have to and so comparing different loans to see what the prices are is important. There are two main ways of comparing the cost. With a payday loan there are often fees as well as interest to pay and this means that comparing rates may not give you an accurate comparison. If you see the AER percentage this will take into account the interest and the fees, but if you are not too good with figures it could still be a confusing way to compare. The best thing to do is to use the calculator that they should have on their website. What you can do is to enter the details of how much money you wish to borrow and how long for and it will let you know how much you will need to repay. If you do this on various sites then you will be able to get different figures and see which is the cheapest. Just make sure that you enter the same information in each site so that you have an accurate comparison.
Most payday loans have the same repayment rules. They tend to require that you repay the whole loan in a lump sum on your next payday. However, there are now a few loans where you can repay in instalments. Although this is likely to make the loan more expensive, due to the fact that you are borrowing the money for longer, it can make it much easier to manage. A lump sum repayment can be difficult, not only because you need to find a big chunk of money, but because you then have to manage until you next get paid with a significantly smaller amount of money. This sometimes leads to people having to borrow more money so that they can manage. Therefore, you may want to see if you can get a loan which allows you to repay in instalments if you think that you will otherwise struggle to manage.
It is worth thinking about whether there are any features that you are looking out for in a good lender. It can be easy to think that there is little difference between them, but there could be. You might be interested in knowing more about them so that you can compare them on things like
- How long they have been around
- How well-known they are
- How good their customer service is
If you take a look at their website you will be able to find out some things about them. You may also want to look them up in search engines and see if you can find any other information on them and ask people that you know. You may even want to contact their customer services department so that you can tell for yourself, how polite and helpful they are. You do need to be careful about bias in the information that you see online. It might be that rival companies will put bad things about others to try to boost their reputation or that people will give a lender a good review because they will pay them good commission if they provide leads. You may also find that customers will tend to only leave a review if they are not happy with the service that they have had and so you may get more negative than positive reviews, although this will be the same for all lenders.
There is a lot of research to be done if you want to be completely sure that you are picking the best payday loan for you. It is important to keep in mind what you are looking for in a loan and a lender so that you make sure that you can match your expectations up with the lenders that are available. You may not find the perfect match, but if you get the best match that you can, then you will be confident that you have made the best possible choice. This will hopefully mean that you will get good value for money from your loan and your experience will be a positive one where you are able to repay on time and get a good service too.Continue Reading...
Often when we buy things we will pay more money sometimes because we want to get better quality. We might therefore feel that something that is more expensive should always be better quality. This might lead us to always buying more expensive brands and we may therefore decide that we should do that with everything that we buy including loans. But is this a good idea?
Value for money
It is really important to understand that value for money is what we should be looking for. We should be finding a product that we feel is worth what we are paying for as well as fulfils what we require. For example, if we pay very little then we may not get good customer service, but to us that might not be important and so it could represent better value for money than a dearer product with better customer services. It is therefore really important to think about what represents good value for money for you. Some of the things that you might pay for if you buy the most expensive item might not be things that are useful to you. For example, you might be paying for a famous brand name which makes no difference to the quality of the product or you might be paying for a company that has lots of local branches when you are happy with dealing online. So think about what you want for your money and whether you will actually be getting that when you are taking out your loan.
Loans features to look out for
Therefore, you need to identify which features of a loan you are interested in. You need to think about how important each thing is to you as well. Most people will think about the cost first. They will want to make sure that they are not paying more than necessary but they may not want to pay too little either and risk other things not being so good. It is important to make sure that you are comparing costs properly, so calculate how much the loan will cost you over the full term and make sure that you include any fees as well as the interest. It is also important to look at how much you are expected to repay and when. You need to be sure that you will be able to afford the repayments.
You may also want to look at the lender and find out more about them. Think about their reputation and whether you are happy with using them. It can be wise to ask people you know about who they have used and whether they would recommend any companies and also to think about looking at online reviews too. It can also be useful to take a look at their website and see what feeling that gives you for the company and perhaps contact their customer services to see how helpful and polite they are. This can be a great way to find out a lot more about the lender, as often we do not really know that much about them.
It is really important to think about whether you can afford the loan. Even if you feel that the most expensive one will give you the best value for money, you still need to ensure that you can make the repayments. There is no use in getting the best quality product if you cannot afford to repay it and then end up having to pay extra charges as a result. So do make sure that you look carefully at how much you will be expected to repay and when and then look at your bank statements to ensure that you would normally have enough money in order to afford those repayments. If you feel that you will struggle to repay, work out whether there is a way that you could spend less on other things or earn more money so that you can afford it or whether you will just have to choose a loan with more affordable repayments.
So although it might seem to make sense that you will get a better loan if you pay more for it, you do need to be careful. It is really important to make sure that you are confident that you will be able to afford the repayments for any loan that you sign up for. This means that you may have to take one that you feel does not offer such good value for money but you will not risk not being able to repay it if you do this. Obviously, it is also useful to look at other features of the loan as well, but your ability to repay is the biggest influence here. It can be a difficult decision but it is well worth spending a lot of time considering it as it is a big decision and could have a huge impact on your future finances.Continue Reading...