5 Things to consider when taking out a payday loan.
When considering in taking out your first payday loan you should consider the 5 points below first which will aid you in narrowing down a company from our comparison table. Although the interest rate may be the main deciding factor you should also consider the lender’s terms and conditions and any other features before completing an application form.
1 Repayment charges / APR charges.
• Look at the interest they will charge you for taking out the loan also known as APR (annual percentage rate). Most payday loan lenders specify a fixed amount but it can be hard to find the ARP charge when borrowing a larger amount. Make sure you check the APR / their interest charge before taking out the loan it should be make clear on the loan documents.
2 Maximum Payday loan amount.
• All payday loan lenders are different and offer from as low as £50 to a maximum of £1000. The most common maximum payday loan amount is £750, but this can vary based on people’s circumstances. Some payday loan lenders may offer more but this is based on existing customers. If you need to borrow more than this amount you should consider taking out a personal loan as this will work out cheaper.
3 Repayment terms.
• As there are so many Payday loan lenders now there are different repayment policies ranging from 5 day to 31 days. The interest charges increase depending on how long you want the loan for. While some lenders require borrowers to repay the loan on the original due date some payday lenders may allow you to use a roll-over on your loan, which means you pay a fee in exchange for more time to repay the funds
4 How Convenient are they.
• Most payday lenders offer online application and approval processes which makes it easier to get an answer quickly and in most cases faster than if you was to speak to their customer service. As most of the systems are automatic this make it faster and more convenient for you. Make sure you compare different lenders to evaluate how simple their application form is online in most cases they should offer an online application process and the electronic transfer of funds. Also consider looking at No fax payday loans, saving you the trouble of sending additional documents to qualify for your payday loan.
5 ID Qualification / Credit checks.
• Some payday loans are more stringent criteria, requiring a credit check to ensure you can pay back the amount in full. Others require you to confirm your employment details requiring you to work full time with a bank account and a debit card attached to the bank account. Making it easier to qualify for your loan. When you compare lenders, make sure you take the qualification requirements into consideration. You will have a much better chance of qualifying for the best cash advance lender.
Although we do not list all payday loan providers and there are many more around, we have tried to pick out the best payday loan providers available and provide you additional information so you can make the best informative choice.