If I Need Money in a Hurry is a Payday Loan the Best Option?

If I Need Money in a Hurry is a Payday Loan the Best Option?


A payday loan is known for being a speedy loan to organise. They were originally set up so that people who needed money in an emergency could get it quickly and so the loans can sometimes be arranged in just a few hours. This can be very useful if you do need money fast. However, it is worth asking yourself whether this type of loan is the best option for you. There are other options that you could consider so that you can compare them and see which will be best.

Savings

If you have any savings then you should use these rather than borrowing money. It can be difficult to part with savings, especially if we have worked really hard to get them or if we are saving up for a specific thing that we really want. However, borrowing money is expensive and if we can avoid it by using our savings then this is a really sensible thing to do. You will be able to start saving again and you will be financially better off than if you had the loan and had to pay the interest and charges associated with it.

Overdraft

An overdraft can be a very expensive way to borrow money in some circumstances so it is really important to be careful if you choose this option. If you have an authorised overdraft then the cost is not as high as a payday loan in most circumstances (although you will need to check). However, if you have an unauthorised overdraft then the costs could be higher, but it will depend on how long it takes you to repay the overdraft. It is well worth looking at the costs of these before using them. You will also need to be very careful to make sure that you repay them really quickly.

Credit Card

A credit card can be a cheaper way to borrow but it depends on the interest rate on the card and how long you take to repay it. You will have the option of paying it all off before you get charged any interest which is the best thing to do if you can. However, if you need a loan then it is very likely that you will not be intending to do this. However, the sooner you pay it off, the cheaper it will be and so you need to keep on top of those repayments and make sure that you are doing everything you can to ensure that you are keeping your spending down so that you can repay it as soon as possible. It can be tempted to keep paying the minimum month after month but this can get very expensive and it can take years to pay off the debt this way. A credit card is only a quick way to borrow money if you already have one. If you have to apply for one then this can take a long time and you may find that you will not be able to get one in time.

Payday Loan

Payday loans vary in price and how much you get charged will depend on how much you borrow and how long for. It is therefore worth getting a quote so that you can compare it to other borrowing methods and see what you think. They can be set up in a matter of hours, depending on which lender you go with and so they are certainly quick. The thing to bear in mind with these is that you usually have to repay them in one lump sum. This is not always easy for everyone and so it is important to make sure that you are aware of exactly how much you will have to repay and when so that you can budget carefully for it.

So, as you can see, it will depend on your circumstances and what options you can find as to whether a payday loan will be the best option for you. It is good to stay open minded and examine all of the options though as you could find that there are options that you had not considered that will be affordable and suitable. It is good to spend some time looking in to it as well as if you rush into things you could end up regretting the decision that you have made. It can be easy to be in a panicked state when you are looking into this sort of thing as you are desperate for money. It may help you to be able to discuss things with someone else who may be able to look at it in a calmer manner which could be beneficial. Even if you do not choose to do this, try hard to think logically and carefully and stay calm so that you make the best decision for you, that you can.

How Can I Choose a Good Payday Lender?

How Can I Choose a Good Payday Lender?

There are many payday lenders available and if you are looking into getting a payday loan, then you may be confused as to which company to go with. You will be right to be cautious and to want to investigate them all but this can be a difficult job and time consuming. There are some things that you can do to make the task easier though but to start with you need to think about what is important to you in a lender.

  • Low cost obviously cost is really important as you do not want to be paying more for the loan that you have to. It is important though, to make sure that you are comparing like for like. The cost of a loan may not just be the interest but could include set-up fees, administration charges and other things as well. If you use the AER to compare them, then this includes these and so you know that you are comparing them fairly. It can be wise to also look at any charges you may have if you are late to repay. These can also vary between lenders and it is therefore a good idea to know what they might be charging.
  • Good customer service if you have any problems or queries then you will need to contact customer services to get help. It is important that your query is dealt with quickly and that you also get a reply which is clear and helpful.
  • Good reputation some people feel that they would rather deal with a lender that has a good reputation. This can help to give them faith that they will be dealt with well as a customer.
  • Well-known name some borrowers would rather use a lender whose name they know. Cobra Payday Loans in the UK is a good example of this. They feel that this means that the lender is more likely to treat them well. This is not necessarily the case, but you will have to decide whether this is something which is important to you and why it is important.
  • Easy to use website if you will be using the website to apply for the loan or to get information then it could be important to you to make sure that it is easy to find your way around and to use it. You will also want to check that it is secure if you use it to apply.

These are just a few suggestions and it is important to think about what you personally would be looking for. Consider whether you are interested in their reputation and knowing their name or whether cost is the most important factor for you. Think about whether there are any other things that might important to you as well.

Then you need to get to the business of comparing them. If you just use a search engine to look for payday lenders then you will get too many pages to be able to have the time to closely examine each one. Therefore, you will need to find a way of whittling it down. If cost is the most important factor for you then a comparison website could be a good start. This will not have all lenders, but if you use a selection of different comparison websites you will be able to get an idea of which lenders might be cheaper than others. Do remember that comparison websites tend to only include sites that pay the best commission to them on leads so there may be other cheaper lenders that are not included on the sites, but if you do not have much time, this can be a good way to find some answers quickly. It can also be wise to try to find reviews of lenders to see what other people think of them. Asking friends and family about their experiences is probably the best way to get an unbiased and honest review, but this may not be possible or may not be something that you are prepared to do. Therefore, online reviews could be the next best answer. If you take a look at personal finance websites, blogs, message boards and social media pages you will hopefully find information about payday loans and which lenders might be the best to deal with.

It is worth making a short list of lenders that you feel might be good and then visiting their websites to see what information you can get about them from there. You may also want to contact them and then you can ask them any questions that you may have and you will get a feel for how good their customer services is.

This may seem like a lot to do and it is. However, if you make the wrong choice of lender then you could end up getting a poor service and paying more for it than necessary.