Who are the Most Trusted Payday Lenders?

We often hear in the news, bad things about different lenders and it can us suspicious and want to be sure that we are picking a trusted one. It can be hard though, to know hwo is the most trusted and we may not even know where to start in order to find out. There are different things that you can do, which should help you to decide who you will trust the most. It is important to understand that you have different criteria in regards to how you decide if you trust a lender and therefore you will need to gather information so that you can put together a picture of what you think that lender is like. There are different places that you can get information form that will help you to build up an idea.

  • Past experience – if you have already used a lender, whether for a payday loan or any other type of loan, you will have an impression of what they can be like. If you have used a payday lender then you will be able to decide whether you would be happy going with the one you used before or whether you would prefer to see which others are available. If you have used lenders but not payday lenders, then you will have some idea of what they can be like and what you like and dislike about the ones that you have used. This will help you to start building up an idea of what you would like to see in a lender that you feel you can trust.
  • Asking people you know – asking others about their experiences can be very useful as well. People you know are unlikely to be biased and will therefore truthfully let you know how they have found the lenders that they have used. Try to find out why they like or dislike particular lenders so that you can decide whether that reason would be important for you or not. It can be hard telling people you are looking for a payday lender as there is a stigma associated with this sort of lending. However, if you just ask them generally about lenders saying you want to borrow some money and you do not know who from, they may offer information about them anyway and you may still gather useful information even if it is about non payday lenders.
  • Looking on finance websites – some personal finance website will have information about payday lenders. You may also find it on message boards and forums associated with personal finance. The information on these sites is more likely to be biased and also people tend to only feel strongly enough to comment on a lender if they have had a poor experience. However, it might help you to identify some of the possible problems and also what to avoid in a bad lender and what to look out for in a good. You may also find that certain lenders seem to stand out as being better than others.
  • Loan review sites – there are site which will review different lenders and compare them, possibly even ranking them. These can seem very useful but it is important to remember a few things. They can be very biased they may even be set up by the lender that is ranked at the top. Those who set up these sites gain form commission on recommendations they make which means they are more likely to recommend lenders which give them more commission. These sites also do not include all lenders. However, they can be handy to hep you see which lenders are available.
  • Lenders own websites – the lenders websites should allow you to get a feel for what the company is like. There might be information about them as well as their products and based on how the site is written and set out you will be able to decide whether you feel happy dealing with them. Sometimes a site might be written in poor English, doesn’t give enough information or is difficult to navigate or worst of all is not secure and you may decide that you will not be using them.
  • By contacting customer services – once you have whittled down your options then you may want to contact their customer service department. By asking some questions and seeing how long they take to reply, how polite they are and whether they are able to help you, you will be able to build up an impression of what they are like.

Like all lenders, payday lenders differ a lot. This means that it is important for you to be able to find out what they are like and compare them so that you can decide which you trust and would like to borrow from.

How do Payday Loans Work?

Many people have a misunderstanding about payday loans and the way that they work and it means that they dismiss them as a borrowing option. When we are looking to borrow money, it is important that we look at all options so that we can select the one that is most suitable for us. Therefore, having a thorough understanding of all of those options is important.

Who are payday loans for?

Payday loans are actually for anyone. They were specifically brought out to accommodate those with a poor credit record because they had no other borrowing options. This means that they do no credit check and so if you have a poor credit rating you will still be able to use them. However, they are not just restricted to lending to those who do have a poor credit rating. They can be an option for anyone. As they only lend a small amount of money and only for a small amount of time, it means that anyone that does not like the idea of a long-term loan and does not like being in debt, then they can be very suitable. They also have other differences form other loan types which might advantage you.

How are they arranged?

It is surprisingly quick to arrange a payday loan which means they are suitable for anyone that needs money in an emergency. As many payday lenders are available to arrange loans at any time then they can be done during the night, weekends or any other time. This means that if you need money in an emergency then this is a good way to get some as it is so speedy. Other types of loans can take weeks to organise so are not suitable if you need money very quickly.  The application process is usually very easy. These things will differ between lenders though as some will be quicker than others and so you will need to check before you apply.

How are they repaid?

A payday loan is unique in the way that it is repaid. It is usually all repaid in one go and on your next pay day. This means that you have to find a large sum of money but because you have to find it on the day that you are paid, it means that you should be able to afford it. You will normally be required to set up a direct debit so that the payment goes out automatically, which will mean that you will not have to remember to make the payment. Some people like this idea s it means that the loan is not hanging around for very long and so they do not have to worry about it for long.

What happens if you cannot repay?

If there is not enough money in your account to make the payment then you will be charged a fee. Each time the lender tries to take the payment there will be an additional fee and so the charges can add up. There is now a cap on payday loans so the cost of the loan cannot be higher than the amount that you borrow, which means that the charges cannot keep piling up indefinitely. If you repay it quickly then the fees should not be this high anyway. It important, to make sure that you have enough money available to pay it, which may mean that you have to be very careful with your spending coming up to when the repayment is due and you may even have to find ways to earn more money.  If you can do this then there will be no need to worry about what might happen if you cannot pay.

Understanding the process should allow you to decide whether this type of loan is one that will be suitable for you. You should do this with every possible loan type so that you have a full understanding of what options are out there for you. This is important as when we are deciding on which loan is most suitable for us then we need to understand how it works and whether it will fit in with out criteria It is also important to compare different lenders on price. You will not want to pay more than is necessary for your loan, so it is important to take the time to do this. Payday loans tend to be expensive, but you may need a loan which has the same criteria and so you may feel that it is worth paying this extra money so that you can get the money quickly, repay it quickly and not have a credit check. Obviously, this will depend on you and if you need to borrow a larger amount than is available form a payday lender then you will need to look for an alternative.