With the rate at which people are being scammed through online payday loans and cash advances, it is very important to carry out reasonable research before opting for a loan service provider. It is not wise to just dive at any loan offer that comes one’s way, but it is necessary you screen these loan options thoroughly.
Though, the legitimate lenders are required by the FCA to make public their lending policies. Through this, you can compare their rates, application processes, terms, customer services and most importantly, their rates.
THINGS TO COMPARE
Loan rates
Inasmuch as FCA is the body regulating lenders activities—rates inclusive, note that not all payday lenders have the same interest rates. So, there is a need to compare the rates of various lenders to know which one suits you. The rates are too important to be ignored despite the agreement being enticing. FCA requiring lenders to make their Annual Percentage Rates (APR) public has made it easier for borrowers to access and review these rates on their websites. You also email these lenders to know their current rates.
Terms of payday loan agreements
This should be the most important thing to look out for when making comparisons. You are bound by whatever agreement you sign, it is necessary you review payday lenders terms in order to make a better a choice. You should also avoid any lender that doesn’t have an agreement—they are the most dangerous people to avoid when taking a cash advance.
A well-reviewed agreement helps to avoid confusion when it is time to repay the loan. It is also normal that you will have to repay the loan on your next payday since it is the nature of these loans. A well-detailed agreement entails all repayment packages to keep you informed of all possible fees and charges.
Additional fees
Aside from the loan interest rates, some lenders charge additional fees which increase the cost of the loan. Some loans have a charge for processing them, while some like cashfloat have one-time financing charge. They are all embedded in the in agreement along with the interest rates which make up the actual cost of the loan.
Paperless Applications
In your moments of financial emergencies, you may not even have your papers with you when applying for payday loans. Payday loans eliminate the need for paperwork—which makes for speedy approval of loans.
The only information required by some lender is your employment history, personal contact, and proof of steady income that can offset your loan. With these in place, your loan would be transferred within hours or the next business day.
Customer service
Getting a lender with an excellent customer service is one step away to solving your problems. You get to have all your questions answered and all your doubts cleared by just chatting with the lenders’ live chat agents. Instant clarification is needed in moments of financial emergencies.
It’s not really much of an important factor to look out for when comparing lenders but, shouldn’t be ignored either.