Payday Loans Comparison Guide
There are various factors to take into consideration when choosing a lender for
your pay day loan, otherwise known as a ‘fast-cash loan’. The majority of lenders
offer very similar terms so you’ll need to look at the small print to make a choice.
The top three things to consider when comparing lenders are outlined below.
1. The Fees or Charges Incurred by the Loan
Most lenders stipulate the same fees for their loans and this generally equates
to £25 for every £100 you borrow. A very small percentage may offer better terms
and a few will definitely offer worse so it is advisable to shop around. Use the
various comparison websites to find any special offers that may be available short
term.
2. How and When the Lender Reclaims your Repayment
The way in which repayments are collected differs from one company to another so
you need to look for a method that suits you. Most payday loan companies offer a
cash advance on the basis that they can debit your bank account of the loan amount
plus fees on the date of your next paycheque/salary or more commonly 30 days after
the terms of the loan start.
Several companies work differently though and agree to accept a payment from you
on a specified date. This means that if you haven’t got the money for the loan on
the specified date then you simply get charged additional fees by the payday loan
lender. Doing it this way means that you don’t run the risk of being charged by
your bank as well when the direct debit payment to the payday loan company is denied.
The way in which a particular company works with regards to repayment will be detailed
on their website or in the small print of the loan application form.
3. What Will Happen if you Can’t Repay the Loan
If the worst happens and you can’t repay your payday loan on the date specified
you need to know what the next step will be. Read the small print carefully to find
out about missed payment charges and what will happen if you can’t afford to repay
the loan for the foreseeable future. Will non-payment affect your financial status
and your credit file? How long does it take before your credit file is marked with
the non-repayment information? Will the pay day loan company help you to sort out
repayments on an ongoing basis?
Quick Summary
Make sure you look into the points mentioned above before choosing a pay day loan
company as they are known to be quite ruthless with regards to repayments. Their
terms and conditions differ dramatically and these need to be compared thoroughly
before making a decision. Use the various comparison websites to help find the information
and then only take out the loan if it is a real emergency.