Top Tips For Choosing The Right Payday Lender For You
It happens to us all from time to time; there’s 2 weeks to go until payday and the boiler breaks or the car urgently needs repairing. For many of us, we don’t have the luxury of savings in the current economic climate but luckily, help is available in the form of payday loans. With so many lenders now out there, we thought we’d bring you our top tips for selecting the best company for your needs and what to look out for.
1. Is the lender you’re looking at an actual lender or are they a broker? If they’re simply a broker, chances are that you’ll receive the loan from one of the bigger and more established lenders in the market as they’ll be associated with them. Do your research…would you be better off going directly to an established lender as opposed to a broker? Different circumstances need different loans, however it’s well worth carrying out your research.
2. Have you looked at what the APR (annual percentage rate) is? Have you compared this between different lenders for the amount you’re wanting to borrow? The higher APR of the loan which you take out, the more you repay. As with anything, shop around and have a look at the different APR’s available but be sure to base your decision not solely on APR as there is other factors to consider too such as payback period.
3. Have you heard of the lender? As with all industries which boom and become huge over night, there will always be some crooks out there happy to scam users. You’ll have no doubt heard of some of the more established lenders and chances are they’ll be your best bet. If a lender doesn’t look legit, chances are they’re not. Stay away unless you’re fully confident that the company is established and genuine.
4. Don’t go with the first lender you come across, always shop around for the best deal. Chances are the interest rates may be very similar, however each lender will have their own advantages. Some will have money in your bank in minutes, but some may charge for this instant service. Some may allow you to borrow over 60 days, whilst some may want repayment in less than 30. Some may lend you £1,000 whilst others may only lend you £200.
All in all, there’s a lot to consider, however if you shop around and compare a number of companies, payday loans are a brilliant way to tide yourself over until payday.