Tips for Making the Most of your Payday Loan

Having a payday loan can be a really great experience for some people but others do not find it so. It is worth understanding what you can do in order to make sure that you get the very best form your loan.

  • Only borrow what you need – it is so important to only borrow the amount of money that you really need to. It can be tempting to buy more than you need because you will have some extra money to use. However, as with all loans, you will be charged interest on everything that you borrow. This means that you will be better off if you borrow less. It will also be easier to repay the loan if you do not borrow as much and so this is something to bear in mind as well. While the idea of having some extra money that you can use to treat yourself is very tempting, it is wise to consider the costs and your current financial situation and do you best to hold off with borrowing too much until you are sure that you will be able to afford it.
  • Make sure you can repay on time – it is really important to make sure that you can repay on time. You will be given a repayment date and how much you will need to repay on that date and so you can be prepared. You will also have a direct debit set up to automatically make the payment. However, this does not mean that you can just sit back and relax. You will need to monitor your money to make sure that there will be enough to repay the loan when the repayment comes out. There could be other payments going out on that day and so you will need to make sure that there is enough money to pay for those as well. You need to be sure that you will be paid on time and therefore that the money will be available as well. If you have other things to pay before you get paid then you will need to be sure that there will still be enough money available so that you do not go overdrawn and therefore that will be paid off before you repay your loan and there is a risk that there will not be enough money left to pay it.
  • Pick the right lender – it is important to make sure that you pick a lender that will suit you. As well as comparing lenders on prices you might also want to look at their reputation, customer service and history. You can do this sort of research online but it could be biased and so the best way to find out is to ask people that you know as there is a much smaller chance that they will be biased in their opinions.
  • Borrow at the right time – it is worth making sure that you are borrowing money at the right time for you. You want to leave it as close as possible to your payday and then you will pay the least amount of interest. Therefore, if you try to manage as long as you can without borrowing, it could really benefit you.
  • Consider repaying early – if you are in a situation where you have enough money to repay all or some of the payday loan early then this could be a wise thing to do. It is important to make sure that you will be able to manage if you do this, as if it leaves you short of money then you might have to look around for another loan to keep you going. However, if you do have spare money and feel that you will have plenty to repay some or all of the loan then it can be a great thing to do because you will end up paying less interest and so the loan will be cheaper. Although, some loans may have fees for repaying early and you may find that it is not worth it. Make sure that you check this, perhaps by contacting customer services first, to ensure that you will not be charged. If you think that you might be able to repay and have not yet taken out a loan, then it could be worth checking with the lenders to make sure that there is no fee, before you decide who to borrow from.

As you can see, there are a lot of things that you can do to make sure that you make the most form your loan. It is easy to just take out a loan and not really think about it, but it is worth thinking and making sure you get the best you can from it. It will benefit you a lot and will make your whole borrowing experience much more positive.

Which is the Best Payday Loan?

There are many payday loans out there to choose form and it can be really hard to now which one to go for. There are various ways that they can be compared and it is worse thinking about some of them so that you can decide what features are important to you and therefore what you should look out for when you are choosing a payday loan.

Cost

The cost is often the most important factor to people when they are considering whether to take out a payday loan. It is worth remembering that there are other things that could be important as well as the cost. However, it is not something that anyone should overlook. A payday lender will have a calculator on their website which will allow potential customers to work out how much they will have to repay if they take out a payday loan. This is a very easy tool to use to calculate how much the loan will cost. If you just take away the amount that you are borrowing form the amount that you will have to repay, you will be left with the cost of the loan. If you are not sure about doing this, then a quick question to the lenders customer service department should help as they will be able to let you know the figure. It is important to think about this cost and whether you feel that the loan is worth it.  Consider whether you would have bought the item you are using the loan to purchase even if it was that much more expensive. This will then help you to decide whether you think that the loan is worth it.  

Repayment amount

It is important to also note how much the repayment amount is and whether that will be an amount that you can afford to repay With most payday loans you will repay the whole loan in one go, meaning that you will pay off the amount you borrowed and the fees all at once. This is great because it means that you will clear your debt really quickly but it does mean that you will need to be really sure that you have the money that you need available to you. It is therefore worth checking to make sure that you will have this money. Think about how much you are paid and what you have to pay for. Consider whether this will leave you enough money to pay for the loan and whether it will be possible for you to repay it and cover the costs of everything else that you need as well. It is important to take a look at your statements so that you can work this out. Try not to just guess and assume that it will all be okay as this could mean that you will end up struggling, but if you work it out and borrow what you can afford then you will be able to repay it. It might be that you will need to adjust your spending elsewhere or find a way to earn a bit more, but as long as you have a plan, then you should be able to feel confident that taking the loan is the right thing for you.

Customer service

For some people the way that they are treated as customers is really important. This means that they will want to check what the customer service is like for the lender before they use them. It may be rare for someone to need to contact customer services when they take out a payday loan as it is paid automatically by direct debit and very quickly, but there is still a chance that you may have a question, query or problem that you need sorting out. Therefore, it can be a good idea to communicate with customer services using the method that you think you would normally use. Then you will be able to find out how quickly they will respond and how polite and helpful they are and that should help you to decide whether you feel that they are going to be suitable for you. Obviously, you will not speak to the same person each time, but just speaking to one should give you an idea of what they might be like to deal with.

Reputation

For some people the reputation of the lender is really important. They want to make sure that the lender will be some one that they can trust. To find out more about them it can be sensible to talk to people you know, read online reviews and to look at their websites. You will find that there is some biased information out there which can make it difficult to judge. However, if you look at lots of information it is more likely to balanced and talking to people that you know is probably the very best way to get an unbiased viewpoint.