There can often be questions that have in our minds when we are thinking about taking out a loan. This is a good thing, as we should be thinking hard about our decision to borrow money and whether it is something that we should be doing. We should also be thinking about the different types of loans and comparing them to see which will best for our needs. We should have an idea of what we want form a loan and a lender and this will allow us to be able to pick the best loan type for our needs. One of the first things that we will be looking in to will be how much money we will be able to borrow using a loan.
How Much Do Payday Lenders Lend?
As with all lenders, the amount that a payday lender will offer, will vary between different lenders. You will find that you can borrow different amounts form different amounts form different ones and it might even be the case that you will find that how much they lend will depend on the person who wants the money. Mainstream borrowers will tend to do a credit check and they will base the amount that they are willing to lend partly on this. However, it will not be the only criteria. A payday lenders will not base the amount the lend on this. They will normally tend to lend an amount between £100 and £1,000 but this will vary. It is worth finding out before you apply, so that you can be sure that the lender you are applying to will have an amount of money that will suit you.
How Much Can I Borrow?
You may find though, that a payday lender may not lend you the maximum amount of money automatically. As these lenders do not base how much they lend you on a credit check, they have to use another way of deciding how they are going to decide how much to lend you. They will not always want to lend lots of money to a first time borrower you see. If you have borrowed form them before and paid it back on time, then they may be more willing to lend you more money this time. However, if you have not repaid them on time before or if you are a first time borrower, it is a possibility that you will only be allowed to borrow a small amount to start with. This may vary depending on the lender though and some may be willing to take a higher risk than others and therefore it is well worth checking out what they are prepared to lend to you.
How Much Should I Borrow?
It is also worth thinking about what you should be borrowing from them. It is wise to actually make sure that you borrow as little as possible whenever you take out a loan. This is because you will have to pay interest on all of the money that you borrow. The interest will be lower if you borrow less. Therefore, it can be a good idea to borrow the smallest amount that you can. So, think about what you need and whether you have any savings or money tucked away that you can use towards it, so that you only borrow what you really need. It can always be tempting to get a bit extra, but you will have to pay it back and quickly, so it is not worth treating yourself this way.