subject: Five Considerations When Applying For Payday Loans [print this page] There comes a time in all of our lives when the money we earn isnt quite enough to afford all the things that we need to live a comfortable life. It starts as we are growing up when we ask our parents for money for the latest toy or so that we can go out with our friends. As we grow up it gets increasingly harder to cover our costs and the amounts of money that we need to borrow inevitably grow.
We need to take out a mortgage to buy a house and you would be hard pushed to find a grown-up who does not rely on credit cards from time to time.
In recent years, however, more and more people are looking towards quick loan companies to lend them money as a short term solution, which used in the correct way can be the right one. There are hundreds of different companies to choose from and picking the right one can be somewhat of a minefield. So here are some common terms which may help make the process of applying for short-term funds a little more simple:
APR Stands for annual percentage rate and is the formula that determines how much money you will end up paying back to the company. These will tend not to differ too much from company to company but if you do your homework this is a simple way to save yourself a few pounds.
Loan amount This is something that can vary dramatically between lenders. It is important to assess exactly how much you need to borrow, to the exact pound if possible, to ensure you are not wasting money. APR is often affected by the amount you borrow.
Repayment period This is where the loan companies make their money. Make sure you are aware how of exactly how long you have to pay back the money and be aware of any increases in APR after a certain amount of time.
Customer reviews These are vital to ensure that you are dealing with a reputable company. Look for positive reviews to guarantee you are not surprised by any unexpected charges somewhere down the line.
Funds for repayment This is the key thing to consider if you want a successful transaction. Take your time to predict spending over the few months after you are granted your loan, and be sure that it is feasible that you will be able to pay back the entire loan by the necessary date.
