What You Should Look For in a Payday Loan Lender 

According to the U.S. Chamber of Commerce, about 12 million Americans take out payday loans each year. As a result, it shouldn’t be too tough for you to find a payday loan lender when you’re interested in taking out this type of loan.

With that being said, you shouldn’t Google “best payday lender” and pick the first one you can find to help you with taking a payday loan. There are lots of bad payday lenders out there, and you might end up getting stuck working with one of them if you aren’t careful.

Instead, you should take a closer look at what an online payday lender can bring to the table and see if they have the qualities that will make them a good payday loan lender. It should help you land on the right payday lender in the end.

Here is what you should look for in a great payday loan lender.

Lots of Experience

As we just alluded to, there are more people taking out payday loans in this country than ever before. It has led to an increase in the total number of payday loan lenders operating throughout the U.S.

Some of these lenders just started giving out payday loans within the last year or two. You should shy away from working with them since it’ll still be too soon to tell whether or not they’re good at what they do.

Instead, you should opt for a payday loan lender that has a wealth of experience within the loan industry. A lender like this is going to offer a wide range of different types of payday loans and make applying for one so simple to do.

Good Reputation

In addition to sneaking a peek at how much experience different payday loan lenders have, you should also read through as many online reviews for them as you can. By doing this, you’ll be able to get a glimpse at how good their reputations are among those who have borrowed money from them in the past.

If you notice that a payday loan lender has one negative review after another, it’s going to be a sign that you should stay far, far away from them. You aren’t going to have a good experience if you decide to take out a payday loan from them.

Rather than relying on a payday loan lender like this, you should conduct a search for one that has almost nothing but positive reviews. You’ll feel so much more comfortable counting on them to provide you with various types of payday loans.

Easy Application Process

If you need to take out a payday loan, there is a pretty good chance that you’re not going to be able to afford to spend a ton of time going through a lengthy application process. You have to locate a payday loan lender that will make applying for a payday loan super easy to do.

Ideally, you want to track down a payday lender that can provide you with an application that will only take a few minutes at most to fill out. You also want to find one that’s going to get back to you as soon as possible to let you know if you’ve been approved for a payday loan.

The last thing that you want to have to do is sit around for days or even weeks waiting for a response from a payday loan lender. By that time, you will have already moved on and figured out another solution to your money troubles.

Different Types of Payday Loans

Do you want to try to take out a payday loan for $500, $1,000, $5,000, or more? Whatever the case, the best payday loan lenders are going to set you up with as many options as you want when it comes to the different types of payday loans.

It won’t matter if you only need to borrow a little bit of money to keep the lights in your house turned on or a whole lot of money to pay for an emergency medical procedure. Either way, a good payday loan lender is going to have payday loans that will work wonders for you.

Low-Interest Rates

If a payday loan lender provides you with a loan that comes with a high-interest rate attached to it, the chances of you repaying it quickly will be slim to none. This interest rate will make it nearly impossible for you to make a dent in your payday loan while you’re in the process of trying to pay it back.

Your best bet will be to shop around for payday loan lenders that have loans with low-interest rates on them. In a perfect world, a 5.99% interest rate would be ideal. But even if you get an interest rate that is, say, somewhere in the 30 to 35% range, it’s going to be much better than what some of the bad payday lenders out there will charge you.

The lower the interest rate on a payday loan is, the easier it’ll be for you to repay a loan in a timely fashion. It’s why you need to look high and low for payday loans that have great interest rates on them.

Next-Day Direct Deposit

There will be a very short window of time when you’ll be able to benefit from a payday loan. Because of this, you’re going to need to hunt down a payday loan lender that can provide you with next-day direct deposit if you qualify for a loan through them.

One of the big advantages of taking out payday loans in the first place is that they’re supposed to provide you with immediate relief from financial troubles. But a payday loan isn’t going to do this for you if you have to wait for a long time for funds to be deposited into your bank account.

Don’t be shy about asking a payday loan lender how long they’ll take to deposit money into your account after you’re approved for a loan. If they hem and haw and don’t give you a straight answer, it could be a sign that you need to take your business elsewhere.

Plenty of Repayment Options

Most payday loans are going to be short-term loans that you’ll be asked to repay within a matter of just weeks. But there are some payday loan lenders that have started to give people months and sometimes even years to pay back their types of payday loans.

The more repayment options that a payday loan lender is able to give you, the better off you’ll be. You should be able to choose to repay a payday loan in anywhere from three months to five or six years if you can qualify for a loan that stretches out over that length of time.

Bad payday lenders aren’t going to want to give you many repayment options. You should focus on working with a lender that’s going to be open to the idea of using the repayment timeline that works best for you and your budget.

Excellent Customer Service

Trying to take out a payday loan can be an overwhelming experience for some people, especially if they haven’t ever done it before. They often have lots of questions about how payday loans work, when they’ll need to be paid back, and so on.

For this reason, you shouldn’t ever attempt to work with a payday loan lender that doesn’t take customer service seriously enough. They should extend excellent customer service to you from the start and make you feel more confident as you seek to take out a payday loan.

If a payday loan lender doesn’t give you a warm welcome when you first touch base with them and let you know that everything will be okay, you might want to consider working with a different option. You need to find a payday loan lender that’s going to be there for you every single step of the way as you strive to improve your financial situation.

Start Your Search for the Best Payday Loan Lender Now

Now that you know what to look for in a payday loan lender, you should set out to search for the best one possible. It’ll make applying for a payday loan so much easier for you from the start.

We would love to talk to you more about how we can help you secure a payday loan when you need to take one out. We can also provide you with additional information on payday loans.

Browse through our blog articles to find out everything you need to know about payday loans.