Comparing Payday Loan Providers
A quick look around town or online will make it evident that there are plenty of different payday loan providers to choose from. As with any type of financial services, some providers are better suited to your needs than others. The trick is to find the right payday loan provider who offers the best terms and will advance the amount of money you need. In order to accomplish this, try to secure certain information before approaching any lenders and compare the data up front. There are several points to compare including the information needed to apply, the type of rate that is assessed on the balance, the maximum amount you can borrow, how you can receive it and what forms of repayment are accepted.
Since you are probably taking out an online payday loan in order to help with some short-term financial emergency, it is a good idea to know what information is required to file an application. This allows you time to collect the necessary documents and fill out the application. Most lenders will let you know what information is required in person, by telephone, or online. In fact, you can often find guidelines for the application process at the lender's web site. You can even submit the application online, saving even more time.
Paying close attention to interest rates is also important when comparing payday lenders. You want to lock in the best possible rate whilst getting the most liberal payment terms. To accomplish this, compare different lenders' rates. Two or three stand out from the rest, making it possible to eliminate the others and focus your attention on that limited group.
Once you have narrowed the list down to the payday loan lenders with the best rates, delve into other specifics of the loan contract. Note whether the interest is applied on a daily or weekly basis, identify any additional fees or charges that may apply, and understand the maximum amount of time you have to repay the loan. Remember that some lenders present the duration in terms of calendar days while others use business days. Sometimes provisions for a payment holiday may occur during the loan period, but don't assume this is the case. Establish how a payment holiday would affect the time you have to repay the loan.
Explore the options of how you receive the proceeds from the loan and what means you can use to repay the balance on or before the due date. Some will provide the balance in cash, while others will initiate an electronic payment to your bank account. In terms of repaying the loan, some will accept cash or allow you to initiate a funds transfer to the lender's account. Typically, if you do not pay the loan off early, the lender will initiate a debit on your bank account on the due date, or deposit the cheque you presented at the time the loan was approved. Go with the payday lender that offers the methods that are the best fit for you, and the experience is likely to be a positive one for all concerned.