We might feel that there are some ways of borrowing that are safer than others for a variety of reasons. It might be that we feel some lenders can be trusted more, that some loans are easier to repay and that some are better for our credit record. If you have concerns about payday loans then it is worth addressing those as it could be that you are missing out on a loan opportunity because you are needlessly worrying about something.
Can I trust payday lenders?
Many payday lenders are relatively new to the market and therefore they may not be companies that we have heard of. We may find that when we compare them and see a list of lenders, that there will be very few that we know. It might also be the case that those that we do know are only known to us because of advertising and not through experience. This does not mean that you should not trust them though. Just because you have heard of lenders does not mean that they are trust worthy, so this is also the case for payday lenders.
It is good to do some research though to find out more about the different lenders and then you can make up your own mind as to whether you think that you can trust them. The best place to start is by asking people that you know. Find out whether they have used a payday lender and whether they are prepared to recommend any to you. They may have a mix of positive and negative experiences and it is wise to learn form those when you are considering hat to do.
It is also worth looking at their websites and judging what you think about them from there as well as finding out more about the company in general and their reputation by looking online. You may find that people are more likely to write negative things as we are more likely to want to report bad experiences rather than good ones, but it is still worth looking and comparing different lenders like this.
Are payday loans easy to repay?
You may feel that you cannot trust payday lenders because you have heard that the loans are hard to repay. It is worth understanding how repayments work so that you can judge whether this really will be something that you will find hard or not. A payday loan is normally repaid in a lump sum on the day that you are paid. This means that you will need to make sure that you have enough money available to repay it and that you set up the direct debit on the right day so that you are sure you have enough money to cover it. You will need to make sure that there will not be too many other payments going out on that day or else there may not be enough left to repay the loan. If you carefully calculate the figures and make sure that you are not borrowing more than you can afford to repay, then you should be okay and manage it. However, it is still worth being wary and making sure that you are careful with your spending just in case. You should also be aware that you will then have to manage for the rest of the month, after the payment is made, short of that much money. Make sure that you will still be able to manage all of your other expenses and keep spending on items that are not necessary to a minimum. It will be challenging to most people but if you plan carefully it should be possible for you to cope.
Do payday loans have a negative effect on credit records?
Many of us are aware that our credit record can have a big influence on, not only what borrowing we have access to, but even things like whether we are accepted to rent a property or if we get accepted for some jobs. This means that we will want to be careful that things that we do will not have a negative impact on our credit record. It is worth noting that any loan you take out and then struggle to repay will appear negatively on your credit record. There will be a note of all loans but if you can show that you are able to repay them, then this is likely to be a positive thing. The problem with credit records is that all lenders etc will have different ways of judging whether they want to take you on. Most will like to see evidence that you can repay your loans on time, but some will not mind a few missed payments and may even like a few missed payments as you will get charged extra for this and they like the idea of being able to charge you a bit extra. However, lots of missed payments are unlikely to ever be seen in a positive light.