If there is one thing that everyone – critics and proponents alike – can agree on, it is that there are countless payday loan providers operating all over the United States today. Most of them operate over the Internet, making it very easy for any person to borrow money through a payday loan lender. This ease is one of the reasons that many people have found payday loans to be the solution of choice.
On the other hand, this ease can also prove to be a problem. The problem lies in the fact that since there are so many choices, people sometimes take the easy way out and just choose whichever payday lender they stumble upon. While this can save time, it may not be the best thing to do. Not all payday loan providers are the same, and not all of them suit everyone.
The best course of action to take would be to take a little bit of time to compare lenders. This is actually a basic tenet when it comes to shopping or looking for any service. Looking for a payday loan lender is practically the same.
So how do you compare payday loan lenders? What should you look for? Here are some things to consider.
1. Rates – this is basic. You have to realise that payday loan lenders have different rates and charges. They do not charge interest in the same manner as conventional lenders do. They do not base their rates on the prevailing interest rates. In fact, they charge a specific amount for every certain amount borrowed. These rates vary from one lender to another. In general, you can expect to have to pay anywhere from ?10 to ?30 for every ?100 borrowed. So let us say that you borrow ?300, you have to pay anywhere from ?30 to ?90. Naturally, you will want to borrow from the lender with the lowest rate.
2. Terms of repayment – again, terms will vary from one lender to another. Your best bet is to look for a lender that will allow you to pay back the whole loan within a time period that will suit you the best.
3. Borrowing limits – there is a maximum amount that customers can borrow and as with the first two, this will vary depending on the payday loan provider. You can expect to be allowed to borrow lower amounts if you borrow from a lender for the first time. If you are a returning borrower, you will be allowed to borrow more. As such, you have to make sure that you choose the lender that gives you the option to borrow the amount that you need.
4. The fine print – this is always a cause of concern. It is called fine print for a reason – the details are written in smaller print, literally. For the impatient, the fine print usually gets passed by. If I were you, I would set aside impatience for a while and make sure to read the fine print in order to avoid future surprises.… Read Full