If you are trying to pick a payday lender then it can be hard knowing which one to go for. There are a lot to choose form and if you start looking online, you could get overwhelmed. You might be tempted just choose a name that you know form a television advert. This may not be a wise choice though.
It is worth noting that if you have a television advertisement it will cost a lot of money. That is why not all companies advertise. The advantages for them are that we get to know their brand name and therefore feel that we trust them more than companies we have not heard of. They therefore pick up more business as a result.
However, due to the cost of advertising and the advantages of having their name known, that lender will charge more money. They will be able to get away with charging more because people will feel they can trust them and will therefore be willing to pay more. However, just because they have done an advert does not mean they are any better. Some people might argue that they have to provide a good service because they want to keep a good reputation. However, why would this just apply to them and not other lenders as well? None of them would want to be tarnished with a bad reputation.
How to Pick a Lender
It is therefore sensible to not worry about whether the lender has had a television advertisement. It is best to compare them on other things. Cost is probably the most important factor to most people so make sure that you look at that. Compare the APR as this will include all of the costs or look at how much the repayment(s) will be and compare that. This should give you a good place to start. It can be wise to also look at how much their fees and charges will be if you miss a repayment. All lenders will of course charge for this, but the amount that they charge can vary a lot and so it is worth looking into this and seeing whether there are significant differences.
It is important to pick a lender that you can trust. If you have never used one before or have used one but do not want to use them again then you need to find a way to identify one that you trust. It is good to start by asking people that you know. This may not be an option that everyone will want to take as we do not all want to discuss finance with people we know. However, if you know someone that has had a payday loan then it could be good to start by asking them about their experience and whether they would recommend the lender or not. If you cannot find anyone you know that can make a recommendation then it is important to see if you can find any other reviews or opinions. If you look online you will be able to find some websites, blogs, forums and things like that which will have information like this. Try to look at a selection of them so that you can eliminate as much bias as possible. It is likely that every lender will have someone saying something bad about them, as no one is happy all of the time and no business is perfect. However, you should be able to see who seems to be most highly regarded and this can help you with your decision.
It is also important to do some research yourself. Take a look at the websites of the lenders that you are most interested in. Then see if you can find out more about the companies, if you wish to. Also contact their customer service department and ask questions. You should be able to get more information there and it will help you to find out more about them and how well they respond to their customers. You will find out how polite and helpful they are and how quickly it takes them to respond, which could be an important factor in your decision.
Having lots of information will take a bit of time to find, but it will be worth it. You will then be able to pick the lender that you feel is best for you. It will take some time to do this but it is really important as it could save you money and will mean that you get the best loan for you. You do not want to regret your decision and not be able to do anything about it. So do not think of it as an unnecessary chore but as a necessary activity to help you to find the loan which offers the best value for money.