Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.

Dec 11, 2019

How to Choose a Lender for Payday Installment Loans

There are dozens of private lenders based throughout the United Kingdom. Most of these lenders offer payday installment loans. The unsecured short term loans they offer are also designed on the basic concept of payday loans. These loans may not be approved on the basis of any asset, security or collateral. Credit score may not play a decisive role. The credit history of an applicant might not matter in most cases. One of the only criterion that matters is the income of an applicant. There are of course other criteria, such as citizenship or residency and employment status or type of employment but the income is the singularly most consequential factor.

You can easily obtain a dozen or more quotes by applying for payday installment loans through a broker. The real quest is to choose the best lender after you receive these quotes. This simple but comprehensive guide should be sufficient to assist you to determine the best proposition from private and independent lenders.

-> Begin with the reputation of a lender. Do not rely on the loan amount, rate of interest or the chances of approval at the outset. You should always deal with a credible lender, one that is upfront with all the terms or clauses in the loan agreement. The loan amount, interest rate and other issues matter but not as much as the credibility of a lender. Make a shortlist of the most popular lenders, from whom you receive the quotes. Use this shortlist as your foundation.

-> Compare the terms presented by the shortlisted lenders. Always embark on a comparison based on similar parameters. Do not compare the interest rate of one loan that is to be repaid in six months with another that has a repayment term of a year. Do not compare rates of interest levied on loan amounts of different values. Choose the same loan amount and repayment term to compare the applicable rates. Likewise, when you use the rate as the basis, compare the offered loan amounts and repayment terms. Every time you consider one variable factor to compare, the other elements should be the same or similar. You cannot have a proper comparison if multiple variables are at play.

-> There is much more to payday installment loans than just the amount, rate of interest and repayment term. You should not pay any processing fee or service charge. There must be no upfront cost for the borrower. You should be aware of the penalties to be levied if you default. Know the extension or renewal policy for payday installment loans. Some lenders will not have any such policy. Others will allow borrowers to renew the term. The more you delve into the terms of the lending agreement, you will find major differences among the lenders and you shall manage to have a lucid understanding of what you are getting into. Such extensive analyses are necessary to identify the best lender.

You Can Still Get a Payday Loan with Bad Credit
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