When taking out a payday loan, you naturally want the lowest possible interest. But nowadays the lowest interest rate on a payday loan differs almost every week. One week lender A has the lowest interest rate and a week later lender B has the lowest interest rate on the payday loan they offer.
To find the lowest interest rate you will have to compare the lenders online or with a financial adviser. Only in this way can you take out the cheapest payday loan with the lowest interest rate. You have to assume that 1 percent less interest on your payday loan will already save a few tens on your monthly payments. The term of the payday loan is also an important factor, if you take out a loan with a low interest rate but with a long term it may be that you are more expensive than with a loan with a slightly higher interest rate and a shorter term.
Payday loan interest
The interest rates on a payday loan are not that far apart when you compare the lenders, but every percent is money. To compare the interest rates with each other you will regularly have to study the interest rates of the different lenders. When comparing you will not only have to pay attention to the interest rates but also to the conditions of the lender.
Conditions for a payday loan
If you are going to take out a payday loan, first read the conditions carefully. Can you repay the payday loan without penalty? Or maybe you have to pay a fine if you repay an extra amount. Are there any closing costs associated with the loan? Also read the small print carefully.
Taking out a payday loan is something you have to take some time for. Too quick a decision can incur additional costs every month.