It can be quite tempting to assume that all lenders are quite similar that offer a certain type of loan. Therefore, you may just use the first one you come across and not bother to compare them. However, you will find that there are differences between them and it is a good idea to actually understand where you might find these differences. Then you will be able to make sure that the loan that you choose will give you really good value for money.
The cost is something that you will need to look in to and then you will be able to compare the lenders and see which is the cheapest and also then see if you think that they are good value for money. Working out the cost may not be as easy as you might think though. You may be tempted just to compare the interest. However, there is more to it than this for most lenders. This is because you will find that you will often have to pay a fee as well, possibly an admin fee or some other charge and therefore you will have to consider that. It is therefore important to make sure that you are confident that you know the exact cost. You can ask the lender to let you know what this is if you cannot work it out and it can be complicated to find out as you are likely to need to read the small print in the terms and conditions so might be easier to check with the lenders anyway.
Amount you Can Borrow
Lenders will have different amounts of money available for people to borrow. This will even vary between payday lenders. Many will lend up to £1,000 though. You may find that some of the lenders will only provide small amount of money to first time borrowers though. This is because they will want to build up trust and make sure that they get their money back, before they are happy to lend a larger amount of money. So, you will need to check how much you will be able to get as you could find that it will be different to the amount that you need.
Most payday loans are repaid on the next day you get paid. They usually have to be repaid in full with both the amount that you borrowed as well as fees and interest, all having to be repaid in one go. It is important to make sure that you can manage to do this or else you will have extra charges. The amount these charges are will change depending on the lender and so it can be a good idea to check this out as well.
Each lender will have different features as well. You will find that some have been around for longer than others, some will have better customer service, be more well-known, have better reviews, come recommended by friends and family and things like this. It is good to think about what is important to you in a good lender and then you will be able to compare them.
So, you can see that there are quite a lot of differences between the lenders. This means that it is important to compare them. You will find that the differences will be greater in some cases than others. It can be worth thinking about what is important to you and then it will be easier to identify the lender which fits closest with your requirements. It will take time but it will be worth it if you get better value for money as a result.