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.