Is a Payday Loan Right for me?

Trying to decide on what type of loan to take out is a big decision. You might wonder which type of loan will best suit you and your needs. There are lots available and many are very well-known or used a lot and others have been around for a long time. However, payday loans are a lot newer and this means that there are people that do not know that much about them. This is why people may question whether they are the right loan for them. It is important to be aware of the main features of the loan and then you will be able to work out whether it is a loan that will suit you and your needs.

Credit check

With a payday loan no credit check is done. This means that if you have a low credit score then you do not have to worry about whether or not you will be approved. It might be the case that you are unable to get any other loans because you have a poor credit record and so this may be a good option for you. However, do not think that if you have a good credit score it means that you cannot use the loan. They are available to anyone and so if you feel that it will suit you then it is wise to use it regardless of your credit score.


One of the biggest advantages of a payday loan is how quick they are. Not only is the application process speedy and simple, you will get the money fast as well. Sometime sit can take a long time to apply for a loan because you have to fill out so much complex paperwork and this will just not be the case with a payday loan. You will also find that the money appears in your account much more quickly. Payday loans tend to be processed very much more quickly than other loans. Offices tend to be open 24/7 and so even if you need money outside of business hours you will still be able to get it. You will also find that the money takes only a few hours in some cases to appear in your checking account. This is much more speedy than other types of loans and means that they are the ideal thing to help you out in an emergency.

Short term

The loans are short term and this can be a good advantage for those that do not like having an outstanding debt for very long. The loan has to be repaid on your next pay day which means that it will only last a few weeks. You will then have to repay in full including the fees and interest. This means that if you are the type of person that worries about being in debt, you will not have to worry for long as the debt will be cleared pretty quickly. As it is repaid on pay day then you should be able to afford it as you will have had the money form your pay check enter your checking account. The lender will also set up a direct debit so that it is easy for your to repay the loan and there is no chance that you will forget.

Lump sum repayment

Some people worry about having to find money to repay loan instalments every month. This can be tedious and if you want to treat yourself to some things then you might have to wait until you have completed those monthly payments until you can buy it. Getting it all repaid in one lump sum means that you will be able to get rid of the burden of the debt quickly and no longer have to worry about it. Many people really like being able to do this.


However, you have to decide whether these features are important to you. You need to decide what is important to you and whether the features of the payday loan will suit you. Obviously, other loans have different features and you may feel that those will suit you more. It may be that you have no choice though. If you have a poor credit record or need money really quickly, then there may be no other option available to you. Do remember though that lenders will vary a bit and so you may find that there will be different features available from different payday lenders. So, make sure that you check out more then one and compare them to be sure that you are getting one that is a closer fit to your requirements. It is good to spend as much time as you can in comparing them as you may find that you will otherwise end up with a lender that is not as good a fit to your requirements as others are.

How to Choose the Best Payday Lender?

There are many payday lenders and it can be difficult to know which one to choose. You might feel rather daunted and just decide to go for the one that you have heard of. However, it is worth doing some research to find out which will be the best for you. There are many differences between them and you should think about what factors are important to you in a good lender so that you can choose the one that best fits with your criteria.


The cost of the payday loan will vary depending on which lender you choose. If you look at a price comparison website you will be able to see the difference. It is important to do your own research though. A comparison website will tend to compare the products based on their interest rate. It is best to get an actual figure as that could be useful in other ways as well. You should find that on the website of the lender there will be a calculator where you can work out how much you will repay in total. You can use these on the websites of different lenders to compare the amount that you will repay. These amounts will include both the repayment of what you borrowed as well as any interest or fees and so you will know exactly how much you will have to pay back. If you compare this figure between different lenders you will be able to see which one will be the cheapest for you.

It is also important to find out what their charges will be if you do not repay the loan on time. These could vary even more greatly and it is important to make sure that if you do end up being charged for this, that you know how much it will be. Knowing the charges may also give you extra incentive to make sure that you do repay the loan on time.


It is worth asking people you know whether they can recommend a lender. They will be able to let you know what experiences they have had with lenders and whether they would recommend one or even tell you one that you should avoid. It can be tricky talking about personal finance in this way, but it can be extremely useful. You could always ask without letting people know that it is you that needs the payday loan. You could imply that you are finding out for someone else or that you are just doing general research.

If you do not want to do this or do not find out anything useful then you can look for the information online. It is wise to only look at trusted sources as you will find that there is a lot of biased information online. It is good to look at general sites which might have discussions on things like this rather than looking at comparison sites which might be biased in recommending lenders which will pay them the highest commission.

Customer Service

Having good customer service is important to many people. It means that should you have any questions, queries or problems while you have the loan, that you can be confident that you will get the help that you need. In order to test out the customer services it is wise to contact them and ask some questions. You will be able to find out how quickly they respond, how useful their response is and how polite they are. You will be able to decide form that, whether you feel they are good or not. It will take time to do this, but you can ask the same question to each place and you will be able to compare how quickly they get back to you as well and compare their answers so you can pick the one that you think will be the best.

Repayment schedule

Most payday loans will expect you to repay everything that you owe and the interest in one lump sum of the day that you get paid. However, there are a few that will let you pay in instalments. It is important to think about whether you would rather pay in instalments and if so, which lenders offer this. There are advantages to paying in a lump sum as the loan will be repaid quickly and you can forget about it and it will be cheaper. However, you might think that it will be worth paying out a few extra dollars so that you can spread the payments and make the loan easier for you to manage.


It is really important to decide which factors are important to you when you are picking a lender. Then you will be able to identify these factors in the lenders that you research and you will be able to choose the one that you think will be the best for you. Everyone will differ in what they find important with regards to the features of a good lender and that is why different people would recommend different ones. It is important that you find the one that works best for you.