Types of Loans
Before you take out a payday loan, it’s important to carry out a proper loan provider comparison. There are many different payday loan providers to choose from, so it’s essential you select a provider that can meet your individual requirements.
Here are some things to look out for when you’re comparing payday loan providers:
- Fees: Payday loan providers are restricted in terms of the amount of money and the fees they can charge, so it’s important you choose a provider that adheres to these regulations.
- Transparency: When you’re comparing payday loan providers, make sure you select between providers who are open about the fees, charges and interest they charge. Also check out online reviews to see what other customers say about dealing with them. Take a look at their websites to see how easy it is to contact them – you should be able to talk to representatives on the phone. Also – do they set out clearly what will happen in the event of you missing or being late with a repayment?
- Terms of the loan: In order to make an informed loan provider comparison you should look at the loan terms, since different providers offer different repayment options. Depending on your financial situation you may want to repay a loan over a longer term, and some payday loan companies provide you with this option.When you compare loan lenders you should also be aware that some lenders make it easier to make repayments, for example by setting up direct debits at agreed dates. And some lenders offer the option of early repayment.Loan providers are not allowed to offer loan terms of less than 15 days so you can expect repayment terms which vary from 16 days to a year. Although some offer even longer loan terms.
- Who can apply: Payday loan providers are generally flexible in their lending criteria. They are more interested in whether a prospective borrower can pay the loan back than whether they have a squeaky-clean credit history. If you’re on benefits then you needn’t miss out on a payday lone either, since some payday loan providers will consider these applicants.
Loan providers with additional features
Some payday loan providers offer additional features to the straightforward payday loan. For example, certain payday loan companies offer a discount to repeat customers as well as offering them a members-only area of the site where they can apply. Once you’ve successfully paid back a loan with a payday loan provider, they may allow you to borrow a larger amount next time. The benefit of these types of additional features may well play a part when you come to compare loan lenders. You could also consider using a free payday loan brokerage service, which might be a good option if you haven’t any experience with payday loans.