There are hundreds of payday loan lenders available on the internet, but how can you truly know that you’re using a lender that’s reputable and reliable? When looking for payday loans direct lenders, there are a few factors which you will need to take into consideration, including whether they have the appropriate regulations and whether they state any extra costs clearly and concisely. If you’re in a financial emergency and urgently need a loan, but are unsure about which lender to choose, we’ve made the selection process a little easier for you.
Are They Regulated By The FCA?
Undeniably, one of the most important parts about choosing a payday loan lender is whether or not they’re regulated by the FCA. Before borrowing a single penny from a lender, you may want to check to see if they are authorised by the FCA. Usually, this information can be found in the footer of the lender’s website. The information you may consider include the FCA authorisation number and the company registration information. If you’re unable to find this information, it’s highly likely that the business is not as trustworthy as it should be.
The APR Rate That They Charge
Once you’ve discovered that your desired lender is regulated by the necessary statutory bodies, you may then proceed to investigate into their extra charges, with APR being the priority. APR stands for Annual Percentage Rate, yet confuses many people searching for a loan lender as it usually needs to be paid in monthly instalments. When searching for a lender’s APR, remember that the stated APR value isn’t the definite one that you’ll have to pay. Instead, you should only pay a fraction of the percentage, although this depends on several factors such as how much you intend on borrowing and how long you require the loan for. It’s worth noting that the very best lenders will tell you the exact amount that you’ll have to pay long before you’re expected to.
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Is Their Website Secure?
When dealing with an online payday loan lender, it can be difficult to discover how reliable they are when human contact is limited. Naturally, one of the most important things you should look out for in a payday loan lender is whether or not their website is secure, otherwise your personal and financial information may be put at risk. Luckily, you don’t have to be a technological expert to do this either, as simple things such as whether they have a ‘https’ URL as opposed to ‘http’ can determine whether or not they have a secure website. In addition to this, particularly on mobile, you may see a padlock symbol next to the site address, which can also be a sign that a website is secure. If a lender lacks security features, you may want to look elsewhere.
Do Your Research
Before being completely set on a single payday loan lender, you’ll want to compare the market as much as possible, looking out for all of the above criteria. More established businesses will often guarantee you stability, and often all potential hidden charges will be made clear to you before you decide to take out a payday loan. Furthermore, you should always conduct your research to find out whether the site is mentioned elsewhere online in reviews or testimonials, as this can provide you with advice from likeminded individuals who have used their services.
Are you slowly sinking under the burden of your payday loans? Are you feeling encumbered and completely clueless as to how to reduce your debt? This article aims to discuss some methods or ways that can help you to find a lasting solution or at least cope with the situation better.
Why are personal loans better?
Personal loans like term loans or installment loans whether you are considering them for a long term or a moderately long term or short term are the best option if you are thinking about managing a big investment or you need to money to meet your recurring shortfalls. A payday loan can get you through a very short-term crisis but if you fail to pay the principal along with the interest, the debt will mount and you may have to pay an APR (annual percentage rate) in excess of 400%. It is one of the costliest financing options.
On the other hand, a short-term personal loan or a term loan has a fixed repayment schedule, a fixed rate of interest, is much more transparent, provides more legal protection to the borrower and is easier to pay off as they give more time and the interest rate is manageable.
For example, flex loans from Cashco Financial are consumer-friendly short to moderately long term loans which provide security to the customer. It takes care of long-term needs of the customer and helps him to improve his credit score. Every time, you pay off your monthly bill, a report is filed with a credit reporting agency in Canada and this helps to significantly improve it, if you don’t default on payments.
You can also use flex loans for consolidating and paying off other loans that you have accrued. You can borrow a flex loan online or visit one of the stores in 62 locations across four provinces in Canada to apply for one. A soft credit check is conducted and the loan is sanctioned in most cases. It is completely hassle-free and you will be protected by Cashco’s client-first policy throughout the journey. You will also receive counseling and any legal help that you may require.
The company aims to provide financial service to the unbanked section of Canada by providing pawn loans. In addition to long-term flex loans, the company also provides single payment payday loans, auto loans and also pre-settlement funding to the needy.
Personal loans also provide a higher borrowing limit than payday loans because they are designed to take care of such financial needs that require bigger investment. The interest rate is usually lower than credit card rates as well.
How to pay off payday loans on time?
- Supplement your day income with additional incomes: If you think that you may fall short of meeting your financial obligation to pay off your payday loan or if you have been steadily building up a debt, you can explore the possibility of considering some income generating sources that pay you decent money quickly. Internet allows you to make quick money. You could work as a freelance writer, take online surveys, do product and app reviews, choose and use a search engine which pays you for using it, if you have a knack for art, you could sell your items on Etsy, sell your used items on Craiglist or in flea markets, work as a dog-walker, do baby-sitting, bartending or anything that suites you.
- Work out a settlement plan: Most scrupulous lenders have a hardship program for such clients who find themselves in troubled waters through no fault of their own. For example, if you get laid off without any prior notice after you have taken a payday loan, the lender may be willing to let your off by just collecting the principal or a smaller amount of interest. Sometimes, they will give you more time. But, it’s best not to rollover your debt again and again if you are not in a position to pay because it just adds up.
- Repay using your RRSP fund or your life insurance policy: It is just better to pay off your payday loan, however insignificant, rather than letting it build up. If needed, borrow money against your life insurance or registered retirement savings plan funds to pay off the loan first. If you pay before the payday loan builds up, you won’t have to lose too much on the maturity amount of your savings plans.