To find a best online payday loan site there are several things you should know and many more things to watch for. This might be a bit boring article for those who expected praises given to several sites that offer payday loans, and it will be. This article will put more thoughts into the search for a such site, because good examples of those sites are hard to find.
Things about lender you need to know!
In general, you should find three things about a lender: license, interest rate and terms.
- License should be the primary goal of your search. If a payday lender doesn’t have license then you should be aware of them. Just by operating without a license they are placing themselves above the law. General advice would be to avoid online payday loan sites that are not FCA regulated because you risk a lot with loans taken from those sites.
- Interest rates some of those online payday lenders offer are truly exorbitant. Some will offer you loans that will be deposited to your account in the matter of hours, but before accepting such conditions be sure to check the interest rate they have. And before agreement on the loan ask them once more about the interest rate you will have to repay. Reason for this last moment check is due to practice in which some lenders list one interest rate on their site and lend you money with different much higher rate. Once you have to pay it they will say that interest rate covers all losses they made by processing you loan application in short time.
- And read carefully about all terms a lender offers. It comes down to asking yourself some questions and seeking satisfactory answers among the date the payday loan site has provided. If you can’t find answers that suit your situation then that site is not for you.
Many payday lending sites will tell you the maximum amount of money they will borrow you, but small number of them will list the minimum. So ask about that info if you can’t find it on their webpage. Some lenders will avoid risking small amount of money on loans, and they place their minimums on 500 or so dollars.
Repayment period is important as well. Most common repayment period is two weeks, but they may vary in both repayment period and interest rate attached to different repayment periods. Look into this and find out whether you will be able to repay that loan on given expiration date.
Search the web for any comments from customers that took payday loans from that site. Sift through them and find whether the payday loans site is good or bad in dealing with customers.
Some online payday loan sites will require some basic documents and some will not. Place more trust in those that require some documents, because they must check whether you are able to withstand their interest rate and pay them when the time comes.
And always and I mean always check the rating that site has from BBB or Better Business Bureau.