Choosing the Right Lender Can Be Difficult and Spotting a Bad Lender Is Not Easy

All lenders and financial institutions have formal and strict regulations they must follow in order to continue operating within the financial industry. Payday lenders are part of this group and they must adhere to the same regulations too. These rules are there to protect the consumer and ensure the lenders are operating fair lending practises.

Unfortunately not all lenders offering short term payday loans are meeting these standards, or following the regulations. Be very aware of which lender you choose if you decide to apply for a payday loan.

Unscrupulous lenders are not easy to spot. They also have very cleverly designed websites and online applications so you need to really look into their reputation and check all the small print in their terms and conditions before you commit to borrowing anything.

Sadly there are still hundreds, possibly even thousands of people who fall prey to these less than honest lenders. They surprise borrowers with hidden fees, apply extortionate interest rates and harass the borrowers, even after the loans are repaid.

Spending time looking online for information, customer reviews, speaking to the customer services teams of lenders, and asking questions about their loans, will help you identify the best lenders with the highest reputation.

Once you have identified two or three good lenders you will be able to narrow it down to the best option for you with no trouble. All you have to do is compare the fees and interest rates, look at their lending criteria and figure out which loan best suits your needs.

Reviews are an excellent way of determining which lenders have a good reputation as honest, and reliable lenders.

Do not rush into a loan agreement if you come across a lender who attempts to 'sell' you a loan. This is against regulations. Potential borrowers must never be harassed or cajoled into borrowing money. If this happens to you, you have every right to report the lender.

A good lender will take excellent care of you and your information. They will not call you all the time, and they will always make it clear how their short term payday loans work, how much a loan will cost and when it must be repaid in full.

Just like banks, Payday lenders are professional financial organisations who take their job seriously. These are the types of payday lender you should choose to do business with. They will be able to professionally process your loan application quickly so that you can access the emergency cash you need, with the minimum of stress and fuss. Then, when you receive your next wage, the loan will be repaid in full.

A good lender may keep your name on record and contact you occasionally, in case you need another loan in the future, but they will not harass you on a regular basis, attempting to encourage you to borrow more and more. If a lender does this to you, you must complain, it is not acceptable according to the regulations.

Points to remember if you need a short term payday loan:

• Do your research carefully and consider what type of loan is best for you and how much you need to borrow.

• Consider three or four lenders so you can have a good choice to look at. Compare their loans, interest rates and conditions before you make your decision.

• Do not let a lender pressure you or harass you in any way. This is unacceptable practise and should be flagged up if you experience it.

• Be careful about how much you are borrowing and the purposes for it. Short term loans are for emergency cash needs only. They should not be used to deal with longer term debt problems or low income problems.