Practical Tips on Choosing the Best Payday Loan
What is a payday loan? A payday loan is a small, unsecured and short-term loan which is paid when the borrower gets his paycheck for the next month. Since, it is based on borrower’s salary day, hence the name Payday. They are riskier, even more than a credit card repayment and can sometimes also hit your ability to get a mortgage.
People generally borrow it for personal use or to complete a long-pending liability.
Below are some points of practical advice for people looking for the best payday loan in Singapore:
1. Understand the market.
Make informed decisions, study market economics and know what market says before considering a payday loan. Also study all the alternatives closely while selecting a company for availing the loan, study its history and ask friends or relatives who have previously taken payday loan about the credibility of the company.
2. Choose lenders who are associated with larger companies.
Don’t choose small lenders who have no history or no association with some larger conglomerates, in fact, choose lenders who are associated with some big names, it will help you know their market standing and ability to give you loan.
3. Focus on interest rates and other terms.
Don’t ever take a decision in haste! Else you might end up in trouble. Interest rate is the biggest source of risk that comes along with a payday loan, as it is, it is on a higher side and at times you even have to pay some roll-over fees too. Do all the necessary calculations and ask an expert before availing such loans.
4. Lenders who can manage their own risk.
Always choose lenders very smartly. As payday loans carry high risk and high interest rates, so sometimes lenders who have taken money from other lenders, charge high rates from their own customers, in order to pay the money they owe to their lenders. So it is a vicious circle, to complete their obligation, they can charge heavy interest from you. So choose lenders who have a solid financial background.
5. Make informed decision.
Take loan from companies which do not get into too much documentation and processing time, along with one which discloses all pros and cons related with availing such loans.
Also keep other points in mind like the extended amount that you can borrow from the lender, if the need be and the risk involved in case you fail to repay on time, tenure for which you require the loan etc