Payday loans online are the best solution for someone experiencing short term monetary concerns and who may not be in a position to access alternative sources of finance. payday loans are small short term loans which are normally covered by the borrower's pay packet. In your search for a payday lender, you will find a huge variety which may make your selection process time consuming and stressful. In the course of this article we shall therefore try our best to look at the various factors you should consider in your payday lender in order to make the best choice. |
These factors include:
The Types of Lender
Payday lenders can be categorised into two basic types: direct and indirect. With direct lenders there is a direct relationship between the lender and the borrower. Everything is processed by the direct lender and the funds are issued directly between them. With indirect lenders, as a borrower you deal with an agent, whom may have multiple relationships with a number of payday lenders. This can be an enormous advantage since your application is more likely to be approved in this way.
The Interest Rate Charged
The interest charged on payday loans can vary from one lender to the next. You should check the Annual Percentage Rate (APR) which is charged by different lenders, and choose a lender with the lowest and most stable rate.
The License Provided
Australian payday lenders are mandated by regulations to register themselves with the Office of Fair Trading (OFT). In order not to get swindled it would be wise to confirm that your prospective lender has a Customer Credit License issued by the Office of Fair Trading.
Transparent Rules and Regulations
A good UK payday lender should provide a clear guideline on its terms and conditions in regards to managing a loan. They should provide clear details on the repayment process as well as interest charges.
Fees and Charges
Payday loans UK often have additional fees and charges involved in the application process. You can either be charged at the onset of the application or be debited the amount from the cash transfer once the loan is approved. The best choice will be dependent upon your financial needs and flexibility.
There may be an occasion where you find yourself unable to make payments on time which can put you in a bit of a bind with your lender. Some payday lenders make allowances for this eventuality and may allow you to roll over or extend the loan in the following month. This can lead to additional interest charges.
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