If you are looking for any type of loan, then you will need to find the best lender. This will allow you to be able to then find the best loan, but it is not as easy as it seems. You may feel that it will be simple to just look at a few review websites or comparison sites and you will be able to work out which is the best. However, different people have different ideas about what makes a good loan and therefore you will generally find that there is no consistency with regards to what people feel makes a good loan and therefore there is no one lender that everyone feels is the best. This means that you will need to do your own research and find out for yourself. This can feel like a daunting task but it is not so bad if you have a methodical approach.
Decide what you need
You need to start off by thinking about what your needs are. You might not really know, but firstly you will need to think about how much money you need to borrow. You also need to think about how quickly you need the money. Some payday lenders will lend out more than others. Many will restrict first time borrowers and only allow them to borrow smaller amounts of money. This means that they might only allow you to borrow a few hundred pounds. Whether this is enough, will depend on what you need and you may find this varies between lenders so you will need to check.
Consider what you want to pay
All loans have costs and you need to think about these when you are deciding on them. The costs will vary between different loan types as well as between different lenders and it is a good idea to get familiar with the costs so that you can decide which you feel offers the best value for money. It is a good idea to consider whether you are prepared to pay a bit more for certain properties of loans. For example, some people will be happy to pay more if they can repay over a longer period of time and manage those repayments more easily. Think about whether there is anything that you are prepared to pay more money for or whether you just want to use the cheapest.
Work out what you can afford to repay
It is really important to work out exactly how much you will be able to afford to repay. You might feel that this is not really that important but actually it is one of the most important things that you should do. You need to think about the things that you normally pay for, particularly the essentials and items that you have to buy and whether you will also be able to afford a loan repayment as well. You should actually look at some figure from past bank statements and work this out. It is really important because if you do find that you cannot afford to repay, you will have to face extra charges and no one wants to pay extra.
Find a loan that matches
Once you have this information and you know how much you need to borrow, what you can afford to repay and what you are prepared to pay in fees, then you can start looking at the different loans and try to find a match. There are a lot to choose from, but whether you easily find something that will work for you, will depend on your requirements. To find a lender you will be able use a comparison website, a review website or a personal finance website but these may not include all lenders. Sometimes these sites are paid commission on leads they generate and will only include lenders that give them a generous amount of money. This means that some will be left out. There may also be some lenders that will only deal directly with customers and not use these sites. You may also want to look at a search engine search result too as this will include a bigger range of lenders and you will have a better chance of finding the perfect one for you.
This could take some time but it will be worth it if it means that you get the right loan for you and get good value for money as a result. If you are in a hurry for the money it can be tempting to skip this, but it could mean that you end up with a loan that is unnecessarily expensive and does not properly meet your needs. So, it is well worth taking the time to do this, even if you rush and only spend a little time on each step.