Are Payday Loans Suitable for Everyone?

It is often the case that we might feel that certain loans are suitable for certain people. In some cases this is true as a mortgage would not be suitable for someone who was not buying a home. However, it is often the case that we make assumptions that may not be completely correct. For example, we may feel that payday loans are only suitable for very specific people.

Those that need money in a hurry

It is often well-known that a payday loan will get people money in an emergency. This is because the loans can be set up very quickly, compared to many other forms of lending. For example, it could be the case that some payday lenders will be open all hours of the day and night and every day. This will mean that money can be made available all of the time, rather than just within banking hours. This can be extremely useful to anyone who needs money overnight or at a weekend and a traditional high street bank is not open to be able to authorise that.

It is also the case that payday lenders such as Boutell.co.uk tend to be able to arrange loans quickly. This is because they often have a quicker process in order to do this. Some payday lenders can get you money within a few hours. This means that if you do need money really quickly, they can be a really good option for you.

Those that have a poor credit rating

Most people are aware that if you have a poor credit rating then you do not have many borrowing options and payday loans are a possibility for these people. This might make many people feel that payday loans are only available to those that have a poor credit rating. However, this is not the case. The loans are available to anyone, so whether you have a good or bad credit rating. This means that if you do have a bad credit rating then the loan can be really useful for you. However, if you do not have a bad credit rating, then you can still use the loans if you wish to. Obviously, you will have more borrowing options but it could be a good idea to make sure that you look at all of your options to find out which is the best value for money.

Anyone?

A payday lender will not check to make sure that you need money quickly or have a poor credit rating before they decide if they will lend to you. They will just lend to anyone that applies and fulfils their criteria. You will need to be over the age of 18, a UK resident with a bank account and a regular income but apart from that they will not look at whether you need the money quickly, what you need it for or whether you have a good or bad credit rating.

However, there are some differences between payday loans and other loans which could determine whether it is suitable for you or not. This is something that you will need to think carefully about. It is therefore a good idea to figure out exactly what you are looking for in a loan and lender and then you will be able to match that up to a lender that suits you the best. It will also be very useful to know what different lenders have available so that you can be sure to pick the right type of loan. Finding about what is available now, can be very useful. Although costs and specific loan offers may change. If you can have a basic knowledge of what each type of loan is likely to be like, this will help you to be able to choose which will suit you. Our circumstances change  a lot and so it is hard to predict what we may need in the future so if we know what is available this will help us to make the best match.

It may seem a bit of a drag and too much like hard work. However, if you are in a situation where you need money and you are in a panic then you may not make the wisest decision. However, if you have the knowledge of what is available to you, then you will be able to make a better decision based on that. It is therefore wise to keep up to date with what loans are on the market and then you will be able to pick the right loan type and then visit different lenders to work out which one will suit you the best. It could be handy to be aware of the lenders too, but you may find that different ones are available when you need money, depending on when that is and that the specifics of each loan, such as the cost may change as well, so having really precise information may not be so useful.

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Where to find the best Payday Loans

There are lots of payday loans available on the market these days and it can be hard to know what the differences are between the different types of loans and what to look out for. If you have never used these loans then it can be even more confusing knowing what to choose. It is worth understanding what the differences are likely to be and this will help you to be more confident when you are choosing between them.

Interest Rate

Many people will start by comparing the interest rate. They will look at the rate and they will choose the lowest one, thinking that this will be the cheapest lender. Although this might make logical sense, it is worth understanding that there are different ways to calculate interest rate. The APR is the annual percentage rate and this is the interest that is going to be charged. There are some lenders that will charge an AER this is an Annual Equivalent Rate which will not only include the interest but any other charges as well. This would be things like administration charges that all borrowers are required to pay. You can see that if you compared the AER for one with the APR for another it would seem that the first was much more expensive when it may not be depending on what the fees are for the other one.

Fees

Lenders will differ in what fees they charge and how much they are. Some will have fees for everyone such as administration or setup fees. These tend to be set amounts that are paid for once. There will also be charges for other things that will again change depending on lender. You may have to pay a fee if you want to repay the loan early, for example. You will also have to pay a fee if you are late to repay the loan or do not manage to repay the full amount on time. These fees can be pretty high, although there is a UK law which makes sure that they are capped so they cannot go too high. However, they will still differ between lenders. You may feel that it is not worth worrying about these because you feel you will repay the loan. However, you cannot be completely sure that you will and so it can be worth just looking at how much this will be. You might find that they will vary quite a bit between lenders and so it is worth comparing them. If two lenders are quite similar otherwise, this might be a difference that will influence you as to which to choose.

Other Factors

Cost is very often the biggest factor that we get concerned by when we are choosing a loan. This is not surprising as money is obviously a problem for us anyway which is why we are looking to borrow some. Obviously, we do not want to pay more than necessary for the money that we are borrowing, but we also want to make sure that we get good value for money too. This means that we need to think about whether there are any important factors that we need to consider when we are choosing a loan and a lender.

The first thing we need to establish is how much we need to borrow and then see which lenders can let us have that much. Payday lenders tend to lend between £100 and £1,000 so if you need more than £1,000 then this type of loan will not give you enough money. If you need an amount within this range, then you may still find that not all lenders will lend it to you. Some may not lend such high amounts to anyone. Some may only lend higher amounts to those people who have borrowed with them before. This is because they like to build up trust first and they will only lend smaller amounts to first time borrowers and then larger amounts once they are satisfied that they will be able to repay. This amount will vary between lenders.

You also need to think about whether there are any other factors that will influence your decision. Things like the reputation of the lender, what their website is like, how good their customer services are and all sorts of things like this. For some people, there things that are really important to them and there are other people that are not that worried. It is worth having a think about what might be important to you. If you have had a loan before you can think about your experience then or perhaps just your dealing with banks and building societies generally. This will be a very short term loan, so you may feel that you will not really mind about these issues but it is worth considering them as they could be a way that you can choose between the different lenders.

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