Most of us will not be that familiar with the lenders that provide payday loans. Although we tend to know the high street banks and building societies and the more well-known internet banks, payday lenders tend to be less well-known. This is partly because they are newer, but also because we do not see their branches when we walk down the street and may not see much advertising from them. This can lead us to feel that we do not know them well enough and therefore we should not trust them. It is important to firstly realise that just because we have not heard of lender it does not mean that we should automatically not trust them. However, it is important to make sure that we do find out more about them, so that then we can decide whether we trust them or not. There are lots of ways that you can find out more and it is wise to pick a selection of these.
- Ask people you know – it can be really good to ask people that you know whether they have used payday lenders and what they think of them. It can feel a bit difficult to discuss finance with other people, but it can be really useful. They will let you know what lenders they have used and what they thought of them and it could help you to decide which ones might be suitable and which may not be. If they have had a bad experience it is good to find out why and then you can judge whether this was down to the lender and whether the problem is something that would be important to you.
- Look at their websites – to find out more about the lenders, you could take a look at their website. The site may have information about the company, but it will also give you an idea of what they are like. From the way things are worded it should help you to get a feel for them. It will also give you the opportunity to find out more about the loans that they are offering. Emu is a great example of a payday firm with a highly professional website.
- Look at review sites– there are some sites which review payday loans and looking at these will help you in some ways. They can be good in a way, as they let you know what loans and lenders are available so you can investigate them. The reviews might be useful but many will be biased because the companies reviewing them get commission on leads. Therefore, they will be more likely to recommend lenders which pay them the most money. This means that you will need to be careful with their recommendations and reviews.
- Look at personal finance sites – You may find that there are general personal finance sites online which will have information about payday loans that you may find useful. You will need to be careful, as again these may be biased but you should be able to find some which are not. If you look at a big selection of them then this should help you to get a more balanced view.
- Contact the lender – if you get in touch with the lender and ask them some questions then it will help you to decide what they are like. Judging them on how quickly and well they answer and how easy it is to get in touch with them will help you to decide whether you like them or not.
This may seem like a lot of work. However, if you want to find out more about lenders and see which ones you can trust then you will have to do some research. It is likely that you will be glad that you did too as you will be able to feel that you can use a lender that you know a lot more about and that you will be able to trust. You should then be able to feel safe with them and that should help you to feel more confident in your decision.
If your safety concerns were more about the risk of a loan then you will need to take a different approach and make sure that you have enough money to be able to pay it off easily and manage afterwards. It is worth working hard on doing these calculations so you can be really sure that it is the right decision. Look back at your bank statements and look at how much money you normally have and think about whether you will be able to manage with that much. Consider how easy it will be for you to repay the loan and whether you will then have enough money left to cover all of your normal bills. If you are concerned then think about whether you can change your spending habits or earn more so that it is easier to manage.