If you have decided to get a payday loan then you might be concerned that you want to make sure that you get the best rates that you can. It can be hard to know where to go to find the rates and how to make sure that they really are the best ones.
Many people use comparison websites for all sorts of things. It can be a good way to compare costs, but it is important to use them wisely. Firstly, you need to make sure that if you are comparing items on costs, that they are being compared like for like. For example, with a payday loan you will usually have to pay interest and fees. If combined together these make the AER which is an equivalent percentage rate. However, if you use the interest rates without the fees incorporated in, then you will not get an equivalent comparison. Therefore, you need to check to see if this is the case with these.
Comparison websites also get commission on leads that they generate through the comparisons that they make. This means that they will often only include lenders that pay them a decent commission. Cheaper lenders may therefore not be there. One way to try to get around this is to look at a number of different sites. Another way is to use this method alongside others.
You may see companies advertising on the television or in newspapers and online. These may be different to the ones that you see on the comparison websites. You could look at their rates and then compare them. Often companies that advertise are more expensive as their advertising has to be paid for, but this may not always be the case. It is therefore worth taking a look at their prices to see how they compare.
If you search for payday loan in a search engine you will get all sorts of results. These will enable you to be able to see what lenders there are outside of those on the comparison websites. You will probably find that there are a lot of lenders and you may be rather overwhelmed. However, it is worth looking at some of these as you could find that you will find one that is a better price.
If the search engine lists are too daunting then a review website might be an easier choice. You will find that there are various websites that will rank or review lenders. These are not necessarily impartial though. Like the comparison websites, they may get commission on leads or they may even be put there by lenders wanting to try to show that their loan is better than others. It can still be a good place to find out a bit more about which lenders are available though.
Once you have done all of this research you will be able to get an idea of how the payday loan rates compare. You will probably notice that the AER seems scarily high. However, it is much more worthwhile looking at the total amount that you will have to repay in real monetary terms. This will not only be an easier figure to comprehend, it will help you to see how much the loan will actually cost you so that you can decide whether you think that it will offer you good value for money.
Once you have whittled it down to a selection of the cheapest lenders then it is wise to do a few last checks. If you take a look at the terms and conditions you will find out what the charges are if you make a late repayment. Although no one likes to think that they will have to pay this, it is a good idea to know how much it is anyway. If any seems much higher than others then you may want to disregard this lender. Knowing this figure will hopefully also motivate you to repay on time as you will know how much it will cost if you do not.
This will be a lot of work to do and can take quite a bit of time. However, if you want to know which has the best rates then this will be the way to do it. You could cut corners by just looking at comparison websites or just comparing the lenders that you have heard of. Although this will save time, it could mean that you will end up paying more than necessary.
It is also wise to think beyond price as well. There may be other things that you should be considering as well, such as the reputation of the lender and how good their customer service is. So if some are very close on their prices then looking at these things could be a way of choosing between them.