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Which lenders have the best Short-Term Loans?

Lenders
by admin

If you are looking for a short-term loan then you might want to know which lenders have the best ones. You will start to find, as you start searching for these loans online, that there are a lot of different lenders and it can be really tricky to know which one to choose. There are lots of things that you might want to think about when you are choosing a lender and below are some of things that you might be considering:

Cost – the cost of the loan is important. You could find that there is quite a considerable difference in price between different lenders and therefore you should make sure that you compare the prices. However, you need to be sure that you are doing this carefully. It can be tempting to compare the interest rates of the loans and then just pick the cheapest. This could be a mistake. The interest rates can take different things into account. For example, the APR is the annual percentage rate of the item, but the lender may also add on fees as well, such as administration costs and so you will need to allow for these as well. If the interest rate is AER this is the Annual Equivalent Rate and this will include the costs. This means that the AER will always be more or equal to the APR. Therefore, you need to be really careful about what you are doing. So, it is a good idea to make sure that you are comparing these costs carefully. The very best way is to find out how much the loan will be to repay. Then you will be able to compare that to other loans and you will be able to know, in monetary terms, which will be the most expensive for you. You may also want to compare the late payment fees as well. Even if you are confident that you will be able to repay the loan, there is always a chance that you might miss the repayment. Take a look at the costs as these could vary quite considerably between lenders that might have very similar interest rates.

Repayments
It is also really important to know how much you will need to pay and when. They could be a variation in this and you will need to think carefully about what you will be able to manage. For example, you might find that repaying in a lump sum is quite tricky, especially when you consider the other things that you will need to pay for as well. Therefore, it might be better for you to look for a bad credit loan that has repayment in several instalments. This will usually be more expensive because you owe the money for longer and therefore pay more interest, but could be worth it. Compared to not being able to repay and having to pay extra fees because of that or the stress of worrying about how you will pay for everything else that you need, it could be a better option.

Reputation
Some people will be concerned about the reputation of the lender and will want to look into it before they borrow. It is a good idea to look at the lenders website and find out a bit more about them. You might be able to look up other information about them online as well. It might be good to find out how long they have been lending and how helpful they seem to be.

Used before
Some borrowers like to always use a lender that they have used before. This is because they will know what to expect from them. While this is understandable, it is a good idea to make sure that you do not end up paying more just because you want to stick to a certain lender. You may also find that if you have never used a short-term loan before then you may have to go with a lender you have not used before anyway.

Recommendations
Some people like to get recommendations before they use a lender. They will ask people that they know perhaps or look at online reviews before choosing. These can be extremely useful, as long as you are sure that they are not biased in any way. Family and friends are unlikely to be biased but some websites might be so make sure that you use sites that you trust not to be. If you not sure then looks at lots of different sites or just go with your instinct.

This is just a suggestion of things that you might be considering. There might be other things which are also important to you and it is good to think about this before you start doing your research. Then you will easily be able to identify which lenders are the ones that suit you the best.

Are Payday Loans the Best Short-Term Loans?

Payday Loans
by admin

There are several different types of short-term loans but the ones that are the most well-known ate payday loans. This might make a lot of people think that they will be the very best type. However, this may not be the case. The problem with loans is that we all have different requirements at different times with regards to our borrowing. This means that we cannot say for sure whether payday loans are the best. However, if we think about what the advantages and disadvantages are, then we will be able to make a decision about which loan might be best in certain circumstances.

Advantages of payday loans

  • No credit check – with all short-term loans you have no credit check and a payday loan is included in this. This is because these loans came about because it was noticed that there were people that were not able to borrow money as they had a poor credit score. Therefore, it was thought that bringing out a loan which was not dependant on credit score would be really useful. This was therefore how payday loans came about. Although a credit check is officially done it is just a soft credit check which does not leave an entry on your credit report. Your credit status is not looked at either as the lenders will lend regardless of this. There is no difference here between short term loans and payday loans.
  • Quick to arrange – payday loans are normally really quick to arrange. Another reason that they came about was because it was noticed that money was needed for emergencies. Therefore, they can take a few days or in some cases a few hours to arrange. This will enable people to get the money that they need quickly. Obviously, if it is really urgent, then people need to make sure that they choose a lender that will offer this fast turnaround. Some other types of short-term loans, such as guarantor loans, may take a bit longer to organise as the details of two people have to be checked before it can be set up and one will need a credit check.
  • Simple to arrange– payday loans are very simple as there are lots of lenders and they want to make sure that it is easy for you to apply. They want to make it quick and easy so that you are not put off and choose a different lender. They will only ask you what is necessary and they are likely to offer the option of applying online or over the telephone which means that you will not need to fill out paper forms. This can be a big relief to a lot of people. These are likely to be options for all short-term loans.

Disadvantages of payday loans

  • Have to repay in lump sum – with a payday loan it is necessary to repay everything that you have borrowed and the interest all in one lump sum. This can be problematic for some people if they borrow a lot of money and the find that when it comes to repaying, they just do not have enough to repay. It can also be difficult for some people who do repay, to then manage the bills that they have to pay for the rest of the month. This is where a loan that can be repaid in instalments can be more useful and an instalment loan could be better. This is very similar to a payday loan apart from the fact that it is repaid in instalments instead of a lump sum.
  • Can only borrow small amounts– a payday loan will usually offer borrowers a few hundred pounds or maybe up to a thousand pounds. This means that the amount you can borrow is relatively small. If you have not taken out a payday loan before, it may be the case that you will only be able to get a few hundred pounds because the lender might want to make sure that you will be able to repay that before they are prepared to take the risk of lending you more money. If you do want significantly more money then you might like to consider a guarantor loan. This loan will allow you to borrow up to £10,000 as long as you find a guarantor who will be prepared to cover any repayments that you miss.

So, you can see that although a payday loan might be the most well-known of short-term loans, you will find that it is not always the most suitable. It is good to be aware of all of your options and have a good understanding of them and then you will be able to decide which of the loan types will be the most suitable for your situation.