There are many payday lenders and it can be confusing knowing which one will be the best for you to use. If you have not had a payday loan before then it can be even harder knowing where to start looking. There are a number of ways that you can choose and it is good to do research before you take on a loan so that you know what you are getting in to.
Ask friends and family – it is really good to speak to people that you know about their experiences of payday lenders. It can be difficult talking to people about money, particularly borrowing but it can be extremely beneficial. People that you know are far less likely to be biased when they are giving you information about borrowing. They will let you know about their own experiences and this should help you to make up your mind. Find out whether there are any lenders that they would recommend as well as any lenders that they would advise you to avoid. Also find out why they have this opinion as it may be a reason that is not important to you. Their knowledge and experience can be really important and so going to them first can be very valuable.
Read reviews – once you have some information, or even if you were not able to get any, you can get more online. There will be all sorts of information about different lenders, reviews, ratings and things like that and you will be able to gain a lot of knowledge. These do have limitations. They are useful for finding which lenders are available and a bit about them. However, there is likely to be a lot of boas in the reviews that you find. Firstly, people are much more likely to write a review if they have had a bad experience compared to an average or good one and therefore you will see a lot of negativity. You may also find that there are biased reviews, perhaps written by rival lenders which could make some lenders seem a lot worse than they are. You may also find that some websites will be positive about certain lenders because they make money from affiliate links leading to those lenders’ websites. They will be more positive about those which give them the most commission rather than those which are better. This means that you may find it very difficult to know whether the information that you are reading is true or not.
Use comparison sites – a comparison website is also a good way to see which lenders are available. They will also be compared on price which can be useful if you are looking to find the cheapest lender. You do have to be wary here as well though. Comparison websites will tend to only list a limited number of lenders. This means that there may be better ones that you are not aware of. They may also tend to only list the ones that pay them the highest commissions, so again there could be some good ones that you are not seeing. However, if you do not have much time, they can be a quick way to get an idea of what lenders are available and how much they charge.
Look at lender’s websites – looking at the lender’s website such as this one by Emu, will give you a chance to get to know more about them. This can be useful as you can find out things like how old the company is and a bit about their history as well as more detail about their products. You will be able to see how much they charge as well and see the terms and conditions if you want to.
Cost — It can be tempting to look at lenders and just choose the cheapest. Although this might seem like the most sensible things to do as you will not pay so much, you need to think about value for money. Consider whether you feel that the lender will treat you well whether they have fair terms and what might happen if you are unable to pay when necessary. It is good to see how much they do charge if you miss a repayment or cannot afford the whole repayment as these costs could vary between lenders. It is wise to think about a few other things as well as the cost. One main thing that you might want to consider is how well they treat their customers. If you get in touch with their customer services you will get an idea of this. You will be able to email, phone, message or speak to someone and see how quickly they get back to you, how polite and friendly they are as well as how good they are at answering questions.