Most people think that all companies providing payday loans, cash advances or bad credit loans are one like the other. Contrary to this general assumption these companies and payday loans they offer are not all the same. Not paying enough attention to properly choose the right payday loan that best suits your individual situation may at the end prove too expensive. The main differences between payday loans and their providers are in their interest rates, fees and loan structures. But there are many other things to consider, like maximum amount of their loans, loan periods, number of repayments, loan establishment fees, etc.

Most of the payday loans providers charge interest on per day basis. However, there are some payday loan companies who charge fixed fee per loan regardless of the loan period, so you pay the same interest amount whether taking the loan for just one day or for 4 weeks. Generally when shopping around for a payday loan, cash advance loan or bad credit loan you should look at the following loan parameters or find answers to the questions below before signing up for the loan:

  • how much is the loan establishment fee
  • is the establishment fee different for first-time loan and subsequent loans
  • what are direct debit fees, administration fees
  • how much is the first time loan interest rate
  • how much is the subsequent loan interest rate
  • is the interest charged on daily basis or for the whole loan period
  • what is the payday or bad credit loan limit
  • which are the loan eligibility criteria
  • does the loan provider require credit check and/or employer verification
  • does the loan provider offer discounted interest rate if you agree to additional checks
  • do they allow loans extensions
  • how many concurrent loans the loan company offers and if it is per person or per household
  • do they offer loyalty benefits or benefits for preferred customers (in a form of reduced fees or interest rates)
  • what are they criteria for awarding you the preferred customer status
  • how transparent are they with all their charges, are there any hidden fees
  • do they offer online application and how long does it take
  • what sort of paperwork and documentation do they require
  • does the payday loan company ask you for the same documents every time you apply for a loan or only the first time
  • what are their order fees, like late payment fees, follow up phone call fees, etc.
  • if you don’t pay your loan on time, will they stop charging you interest after certain number of days, or does the interest continue indefinitely until full repayment of the outstanding balance
  • does the payday loan provider allow repaying the loan early
  • do they charge any fees for repaying the loan early
Posted on: September 13, 2013
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2 Responses to Choosing Payday Loan – How to Select the Best Fast Cash Loan
  1. Could you please let me know what i need for a small amount of loan please

    • We suggest you contact the loan provider and ask them what they need. Requirements may differ, but usually it’s one form of photo ID (driving licence), proof of address (power bill) and one or two latest payslips.

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