Compare payday loans - find the best one to suit you and your needs.
It’s easy to think that all payday loan companies offer the same product and base their lending on the same criteria.
This is a mistake that’s not worth making – it’s important to choose carefully which is why many simply compare payday loans and what different schemes have to offer.
So why should you compare payday loan companies? Well it’s simple really – there are a number of criteria they tend to differ on, including:
Compare Interest Rates
I’m not necessarily talking about the Annual Percentage Rate (APR) – APR is an inaccurate measurement of the interest you repay on a payday loan so I’m not going into this again. The actual interest rate is a measurement over the course of a month – if we look at two lenders who use a “slider” on their websites we can actually take a look at the amount you would likely repay. Payday UK – for example, have an APR of 1737%, however, if you actually calculate it properly you won’t pay anywhere near this amount of interest.
Let’s assume you want to borrow £80 over a 30 day period. In effect you’ll repay the £100 plus interest of around £29 – which makes the repayment value £129. This makes your actual interest simply 29% – cheaper than some bank overdrafts or even affordable unsecured loans.
The same applies to Wonga – however, it actually works out at slightly more expensive with an interest rate over 30%. In spite of this it’s important to bear-in-mind that not all lenders will have interest rates as closely matched as this – some will undoubtedly charge more. But this is why it’s so important to compare payday loans before simply taking one out.
The Amount You Can Borrow
The amount of money you can borrow from a payday loan company is yet another thing to consider. You won’t be able to borrow the same amount from all payday lenders. For example, did you know that Wonga have set their first time loan limit to £400 – and they’ll only loan you the maximum if they’re sure you can repay this at the end of the month.
Let’s now quickly compare this to Payday UK who seem pretty willing to lend you full £750 first time around if you need it. However, like Wonga they will only lend you the maximum if you can repay it.
When comparing payday loans it is vital that you consider the amount you want to borrow and whether you can feasibly repay it at the end of the month. It’s also important to be completely honest when applying for a payday loan. The last thing you want is a huge debt that you’re unable to repay – that interest rate will only increase the more you leave it. This is why it’s ideal to repay the loan quickly (within a month / 30 day period).
So – take a look around and browse our range of payday loans. Most importantly – find a loan to suit you and your needs.
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