UK Finance Guide
How to Choose the Best Payday Lender
There are many lenders that offer payday loans and it can be confusing knowing which one would be the best for you to use. They do vary in a number of ways and it is worth thinking about which of these ways will be most important to you. Below are a few differences that you might find between them and knowing these can be a help to you in starting off your research into which you think will be the best.
The cost of the payday loan will vary between lenders. This will happen with all types of loan and it is important to make sure that you are aware of the differences in costs. Cost is often the most important factor for people when they are choosing a loan. It is easiest to calculate the costs of each loan by looking at how much you will be expected to repay. You will find that there is a calculator on each website and this will allow you to work out how much you will have to repay in full by entering the amount that you want to borrow and how long you will be borrowing it for. If you calculate this on all of the lenders websites that you are considering using then you will be able to see how they compare. However, even if you feel that cost is the most important factor for you, you will need to make sure that you consider other things as well. You may find that there are some lenders that are really close on cost and therefore you need other ways to compare them.
If you do not repay a loan on time then there will be a fee to pay. This is the case with all types of loans and it is worth finding out how much these fees will be before you sign up. You may feel that you will be really careful and will not get behind in your repayments. However, it is still worth finding out as you never know what might happen. You might find that two lenders are very similar but they vary considerably in their fees and so it is worth making sure that you look into this carefully. It can be tricky to find out what the fees are though as they are often hidden in the terms and conditions. It may be wise to contact customer services to find out.
It can be worth finding out a bit more about lenders and what they are like. If you have not used a payday loan before then it could be the case that you will not know anything about the various lenders that are available to you. It is good to start by asking people you know whether there are any lenders that they would recommend. They will have no reason to be biased and so you should get some honest information. You could also look at reviews online but be sure to use trusted websites which are not biased. This can be hard to do and find so you need to be careful that you are not looking at a review that is biased towards or against particular lenders.
Some people feel like they would rather borrow money from a well-known lender. There are many payday lenders and some advertise a lot and so their names are well-known and others do not. However, it is worth thinking about whether you really need to have a well-known name. A company that is well-known advertises and this means they have to spend money on this. This could mean that they will be spending more money and therefore they could end up charging more for their loans as a result; so that they can cover this advertising cost.
If you have any problems during the course of the loan then you will need to get in touch with the customer service department. It will be important that they are quick to respond, polite and helpful. Therefore, you might want to find out what they are like before you take out the loan. If you need to contact them to find out about fees, as suggested above, then this could be a good opportunity to also see what their customer service is like. Just make sure that you contact them using the same means that you think you would when you took out the loan.
So, you can see that there are lots of things that you might want to consider when you are choosing a payday lender. It is good to think about which are most important to you and whether you want to prioritise one over another. There may also be other things that might be important to you as well and so it is a good idea to have a good think about what might and might not matter.