Payday loans are short-term loans, and the ease of getting these loans makes them extremely attractive for consumers who have a financial emergency or poor credit history. However, these short-term loans have a high interest rate and that is why it is important to compare payday loans and lenders. If you are unable to repay the loan on time, it can attract high charges and escalating interest rates.
Payday loans usually help cover emergency expenses that you may face at the end of the month, just before payday. Many borrowers take these loans without doing their due diligence or checking whether they can fulfil the repayment obligations. Many payday lenders offer rollovers that allow borrowers to carry forward the repayment to the following month, but this comes with a steep fee. You should try to avoid rollovers as much as possible as it can result in major financial difficulties.
Need to compare payday loans
If you need money urgently and don’t have any other option, try not to take a payday loan from the first lender you find. Payday loans have high APR, and this makes it imperative that you compare the costs and fees that different lenders tend to levy on payday loans.
When you compare payday loans, you find out exactly how much it will cost you. You find out the APR and fees of different lenders, and this lets you opt for the best deal. You can also decide whether you can afford the loan. Remember, it is important that you pay back the loan on time.
Where to compare payday loans?
There are many online loan comparison sites that not only connect you with direct payday lenders but also let you compare payday loans offered by different payday loan lenders. However, it is important that you select a loan comparison site that is regulated and authorised by the FCA. One such site is allthelenders, which is the UK’s first loan comparison website dedicated to the short-term loan industry. It offers unbiased results from direct payday lenders so that you can find the cheapest payday loan before applying for one.