How to Pick the Best Payday Loans
There are a lot of companies that offer payday loans and it can be difficult to know which ones to use when you have so many options available to you. The best thing to do is to think about where the payday lenders will differ in their approach and then consider what you will find the best. For example, they are likely to differ in their interest rate, fees, charges, customer service, ease of use and timescales and you will need to find out more about these, if they are things that matter to you.
The interest rates are something that many people will look at when they are thinking about which lender to use. This happens with all types of borrowing. The interest rates may not be comparable though and it is important to understand this. Some rates ate the APR and this is the Annual Percentage Rate which is just the interest charged, whereas other rates are the AER which is the Annual Equivalent Rate and it will include the equivalent cost of any fees that are charged in addition to the interest.
Some lenders will charge fees as well as interest and some will not and so it is important to make sure that you check this out. The fees will be things like administration fees to cover the costs of setting up the loan and some lenders will charge them separately and others will have them included within their interest rate. This can make it difficult to compare lenders and so it is a good idea to find out how much it will cost you in real money rather than the interest rate and that will help you to be sure that you are making a proper comparison.
Lenders will also charge you for things as well, such as if you make a late repayment. It is good to find out how much these will cost you. You may think that you will not attract charges as you intend to repay on time, but it is worth finding out anyway. You could find that the cost will motivate you further to make sure that you do repay on time or it will allow you to compare different lenders that might otherwise be similar.
For some people, customer service is really important. They will want to make sure that the lender that they will use will be able to provide them with good customer service. It can be tricky to judge this, but you will be able to contact the customer service department before you take out a loan with them and this should enable you to judge what you think of them and whether you feel that they will suit your needs.
Ease of Use
It can be good to also think about how easy they will be to use. This will depend on how you like to deal with a lender. You might like to deal with them online, for example, or you may prefer to use the telephone or deal face to face. It is good to think about this and then investigate how you will be able to deal with the lender that you have in mind.
It is important to also find out how quickly the lender can get the money to you that you need. You will find that they will vary and some may be able to get you money in a few hours, whereas others will take a bit longer. There will also be some companies that will be open overnight and at weekends which could be useful if you need money at that time. Therefore, if you need money quickly, then these factors could be important to you.