There are many loans available online and it can be rather
daunting if you are looking or one to know where to start. With so many lenders
to pick from you may wonder where you can start. However, there are some things
that you can do which will make your search a lot easier,
- Decide what you want in a loan – it is wise to start by thinking about what you want from the loan. Consider how much you want to borrow, how long for and how much you can afford to repay. So, you probably have a specific purchase in mind, but make sure that you take into account any savings that you have. Use those towards it and top up the rest of the purchase with a loan. This will enable you to be able borrow a smaller amount of money. It is also good to think about how long you want the loan to last. There will be a varied amount between different online lenders and it is wise to decide whether you want a quick loan which lasts just a few weeks of whether you feel that something that last longer will be better. It is also really important to think about how much you can afford to repay. You need to think about what money you normally have available and whether you would be able to cover the cost of whatever loan repayments you would need to make for this particular loan.
- Decide what you want in a lender – it can also be important to think about what it is that you want in a lender. This might not be quite as important as what you wish for in a loan but it could still be important to you. Some people are focussed on making sure they trust the lender, perhaps using one they have used before or know someone that has used them. They may want one that is well-known. Others might be more interested in the company history and how long they have been lending. Some might like to look at the reviews of lenders to decide. There are different factors that may or may not be of interest to you and it is worth having a think about what might be important to you.
- Use comparison websites – website which compare loans can be useful. Although there are some drawbacks of using them. Firstly, if they compare them on interest rates, then it is worth making sure that you check the total cost of the loan as the interest rate may not include all costs unless it is the AER (Annual Equivalent Rate). It can be a good way to find out about which lenders are available but you may find that there will be lenders that are not included on these sites and so you may miss out on seeing what they have to offer.
- Look at personal finance sites – by looking at some personal finance websites you might be able to find out more about online loans. Some might have information about the different types and you will be able to find out more about them generally. You may also find that some might have reviews of different lenders as well which could be very useful to you. You could find that you will be able to use this information to help you to decide whether online lenders are right for you and which online lenders might be the ones worth looking at in more detail.
- Examine lenders websites– Another way to find out more is to look at the websites belonging to the online lenders. You can use a search engine to find out more about the lenders and this will enable you to find their websites. It can be worth looking carefully at the sites as it will let you find out more about the lender and the loans that they offer. You will be able to get a feel for what they are like as a company as well and you will be able to contact them if you want to as well, through the website or using the contact details that they provide.
This is a lot of information to look through but it can be
worthwhile. Until you are aware of who is offering these types of loans and
what they are like, then you will not be able to make an informed decision. You
will need to think hard about what you are looking for in a loan and lender and
then you will be able to find the lenders that will match up with your
requirements. It will make it easier to search as you will know more about what
you are looking for. It will be worth the time it takes as well as it could a
make a big difference to your borrowing experience.
Many people take out payday loans these days and some will
have really good experiences when using them but some people will not have such
good experiences. This can be down to the way that the loans are dealt with by
the borrowers as well as other factors. It is wise to understand what you can
do to make sure that you have the very best borrowing experience when you take
out a payday loan.
A good place to start is by comparing lenders. There are lots of different lenders available and it can seem rather daunting to decide who to go with. However, they do differ and so it is worth making sure that you choose the one that suits you the best. There will be different in the amount that they cost, for example and that can be really important. You do not want to pay more than necessary. You should find that most payday lenders will have a calculator on their website so you can work out how much you will repay in total. You will just need to put in details of how much you want to borrow and how long for. This will allow you to compare their costs and see which will be the cheapest for you. By using a cheap lender you will be able to repay less and this will be very helpful.
Make sure you can repay
It is really important to make sure that you will be able to repay the loan. You will find that you will need to set up a direct debit so that money goes out of your account on the day that you are paid. This means that you are very likely to have the money available to pay it because your salary will just have gone in. However, you may find that you will still not be guaranteed to have the money available. This could be because you have an overdraft that will be paid off by your salary or because you have other bill payments that go out on that day. You may even just not get paid enough to cover the loan repayment. Therefore, it is really important to check this. Make sure that you look back at your bank statements and check how much money you will have available and then you will be able to work out whether it will be something that you will be able to afford or not. If you cannot afford it then you might be able to find alternative ways that you can, such as thinking of ways to earn a bit more money or ways to delay paying some of the other money that you owe.
Have a contingency plan
Even if you feel confident that you will be able to repay the loan, it can be wise to have a contingency plan. This means that you have a backup just in case you do find that you will not have the money available to repay after all. It is worth thinking about what you might do, even if you do not have to do it. You might, for example, be able to sell some things to make money, ask for an advance on your salary, do some work elsewhere to get a bit extra or things like that. It is worth brainstorming a few ideas so that you can do something if you need to and make sure that you will be able to pay the loan. Not only will this be useful if you need it but it will give you a sense of security going into the loan, knowing you can be really confident that you can repay it.
It is also really important to prioritise repaying the loan over other things. This means that if you are tempted to spend money on things which are not that important, then try to resist doing so. Keep in mind that you have a deadline for repaying this loan and that once it is paid off you will be short for money for a month and so you will need to be extra careful with your money. Hopefully this will enable you to concentrate your spending only on essentials. If you do this you should have a positive borrowing experience. If you do miss the repayment or do not repay in full, then the loan gets more expensive. This is when you get out of control with the loan and you are no longer using it to your advantage. So this is a situation that you want to avoid if you can. Obviously, there will always be some people that do struggle and if this does happen to you, then do everything you can to limit spending and increase earning until it is paid off. It will be tough to do this, but worth it if you can minimise the amount that you are charged and clear the debt as quickly as possible.