Ways to Find the Best Payday Lenders

Overview

Payday loans are short term financial arrangements designed to assist individuals in the case of an emergency.

Amendments to the National Credit Act made it possible for a number of micro lenders to enter the financial industry and offer specialised services to the public at large. More micro lending institutions entered the fray, with a number offering payday loans. These loans can be easy to get but usually come with high interest rates.

What to look for in the best payday lenders:

Loan offers for individuals who are at least 18 years of age, with an income as well as an active bank account.

The best payday lenders offer fast approval processes, so loan applicants won’t have to wait for days or weeks on end to get access to finance.

Before you apply for a payday loan, the lender should assess your affordability before giving you access to funds. Your credit record may be assessed in the process too. The lender should also thoroughly explain the main features of the loan. You should never pay upfront to borrow money from a payday lender.

Usually, you’re given up to a month to pay back the money that has been borrowed, plus interest. The best payday lenders however, offer payday loan terms of up to 32 days, giving individuals ample time to meet make payments.

Before you agree to any credit agreement, make sure that you check to see if the payday loan lenders are registered credit providers (with the National Credit Regulator). These lenders also cannot by law, give you a new loan to pay off an old loan.

With the best payday lenders you can repay a loan any time before the due date and cannot be charged extra for doing this. The lenders should encourage early repayment of loans.