Sometimes unexpected expenses, such as car repairs or fixing damage to your home, can leave you struggling for money until your next wage comes through. Payday loans are designed to be short term loans to tide you over until the end of the month or, as the name suggests, your next payday. Although access to a specific sum of money exactly when you need it sounds ideal, the number of reliable providers is limited in comparison to those who are risky. In general, it’s better to take out pay day loans from reputable companies. Make sure you go with a reputable site or business to understand everything available. Sites like Wizzcash loans let you know exactly what you are going to get. Here’s how to spot a good payday loan deal and avoid getting into further financial difficulty:
Do Your Research
It’s a good idea to shop around for the best value payday loan to suit your current financial circumstances. When deciding on a lender, it’s always best to go with a well-known provider. If you’re unsure try to read online reviews or search for them online. Their name should appear on multiple websites and they should have a regularly updated, high quality website of their own. Remember that online reviews can be fabricated or misleading, so take these with a pinch of salt.
Short Term Repayment Period
Some payday loan companies offer a longer repayment period, usually three months instead of one. For some people this sounds appealing, as it gives them time to earn more and budget in other factors instead of having the loan amount deducted from your bank account in one lump sum. However, the longer you borrow money for the more interest you will have to pay. There is a limit on payday loans interest rates which means that you won’t ever pay more than double the amount you initially borrowed. It’s not a good idea to rely upon this cap to see you through. Instead, choose a loan with a short term repayment period so you won’t encounter any additional costs.
All reputable payday lenders should have a credit license. You can check this before you agree to borrow by visiting the FCA Consumer Credit Register online. This is important as it means that if there are problems with your loan or repayments, you have some help and support available. Companies without this are essentially loan sharks and may resort to any means to get their money back. They should also meet other regulations, including those set out by the Office of Fair Trading and provide a full list of terms and conditions for their payday loans.
Avoid Repeat Loans
Once you have borrowed and repaid a payday loan, it’s likely that the lender you used will try to tempt you back. They might offer you a larger loan for a discounted fee, which will have even bigger repayments. If you regularly need to take out payday loans it’s likely that something isn’t right financially, so avoid this at all costs.