Which Payday Loans are the Best?

Which Payday Loans are the Best?

There are different payday lenders and loans and it can be difficult knowing which to go for. It can be wise though, to work out which will be the best. This is because you want to be able to make sure that you have the very best borrowing experience. This can be something that we often skip when we are looking for a loan and it can be a mistake. If we do ignore it we can end up paying more than necessary or using a lender that does not really suit us. So it is worth doing this research first.

Think about what you want

It is important to start by thinking about what you want in a loan and a lender. You will need to think about how much you need to borrow, how soon you want to repay it, what you can afford to repay and what you are looking for in a lender. Some people are not too bothered about the lender but some want one that is well known, that they have heard of, has a good reputation, comes recommended or things like that. This can be hard to find if you are new to payday loans. This is because you will not know so much about where to look for this sort of lender. There are lots of lenders available as well, which is good because it gives you choice and the competition drives prices down but it can make it confusing when you are trying to pick between them.

It can be tempting to think that there will be one lender who will be the best for everyone and if you can just find them you will be able to get the best service and value for money. However, it is sadly not this simple. This is because we all have different requirements when it comes to loans and lenders, especially for bad credit and therefore a lender that is fantastic for one person may not be any good for another. This could be because one person just wants to borrow £200 and they find a lender that does this cheaply but another person wants to borrow £1000 and that lender does not even offer that much money. This is a simple example but hopefully it shows how different needs lead to different people liking different lenders. However, having a list of your requirements is a good start.

Ask people/read reviews

If you want to know more about the reputation of lenders then there are a few things that you can do. Asking people that you know is probably the best way. This is because they will be honest with you and have no reason to be biased towards a particular lender. They also want you to have the best experience and so will let you know if they think a specific lender might not be good to use. Of course, you may not know anyone that has used these lenders but also you might find it hard to ask people about it. Telling people that you are considering borrowing money is not always that easy. You will be admitting to them that you are struggling financially and this is not something that people always want to talk about. You may find though, that most people have borrowed money or considered borrowing so it will not be as hard as you think. However, as an alternative, you could look at websites that review and rate lenders instead. However, you need to be careful of these as they do tend to have boas. It could be that lenders have rated themselves highly to try to get customers. It is more likely that the people who set up the website get commission on the leads they generate based on their recommendations. This can mean that they will be more likely to recommend those that pay them better and they may totally ignore those that pay nothing. Be aware of this when you are looking at different sites.

Study websites

Looking at the lender’s website can be useful as well. You will be able to get to know more about the lender and their loans from it. It can give you an idea of what they are like as you will get a feel for them from the tone of the website. You might be interested in finding out things like how long they have been in business, how many customers they have had, what they charge, what their loans are like. You might also be able to get a feel for how friendly, polite and helpful they are, but you may need to contact their customer service department to get more information about this. You should be able to do this by phone, email or online chat and this will help you to know whether you feel you want to use them.

Should I use Payday Loans to buy Gifts?

There are many questions that we might have about payday loans. This is because many of us may not have used them before. They are not like traditional loans, which more of us will have used and therefore it is well worth thinking hard about them and learning more about them before using them. Find out how they work, who they are for and what they are for and this will help you to be able to decide whether they are the right type of loan for you to use. You will need to think about way that the loan works and what you want to buy and then decide this. For example, if you want to buy gifts, will they work?

How much can you borrow?

It is a good idea to start by thinking about how much money you need for the gifts that you are buying. There are lots of different possibilities here. It may depend, firstly, on how many gifts you need to buy. If it is just for one birthday, then you will not need as much as if it was for Christmas, for example. So, think about this and then you will know whether you will be able to borrow enough.

The amount that you can borrow may depend on a few factors. For example, different payday lenders will lend different amounts. On average they will tend to lend between £100 and £1000 but this will vary depending on the lender. You may only want a small amount anyway but if you do want a larger amount then you may need to check that the lenders will give you that amount before you consider using them.

You may also find that lenders will not lend you large amounts of money right away. This is because a payday lender will not do a proper credit check or need collateral to lend you money. They will therefore need to find another way to build up trust with borrowers. This means that many of them might only lend smaller amounts of money to first time borrowers to see whether they will repay them. If the loan is repaid in full, then the lender will be more willing to then lend a larger amount of money next time. This means that if you do need a larger amount you may not be able to get what you need. However, if you compare different lenders, then you will find that this will be different for different lenders and so you will be compare them and decide which you think might be the best for you.

Can you repay it?

It is also really important to ask yourself whether you will be able to repay the loan. You need to find out how much you will need to repay and when and this will enable you to work this out. To do this you need to start by either using a calculator on the lenders website or asking the lender how much you will need to repay. This will be the amount that you borrowed plus the interest and any fees. With a payday loan you will need to repay this in one lump sum on the day that you are paid.

You may then think that this will mean that you will have plenty of money available to repay it. However, you need to be really careful and do some calculations. You need to think about how much you have to pay out on other things as well. This is where it is really important to actually take a look at how much you pay out for things that you need. Then look at how much money you get in and work out whether you will still have enough money left to cover the loan repayment.

It is important to make sure that you think about whether you have any extra expenses that specific month or whether your salary might be lower. This could be due it being a short month if you get paid per day, perhaps annual expenses such as insurance, car MOT or things like that occurring as well. Look back to the bank statement form the previous year to check these things out.

It might seem like a lot of hassle to do all of this but it is worth it. It will help you to be able to find the lender which will give you a loan for the amount of money that you need and that you know that you will be able to repay it. Then you will be able to take the loan out with confidence and know that you will be able to repay it and cover all of your other essentials as well. So, you can use the loan to pay for gifts as long as you are happy that you will be able to repay it.