Only ever apply for the amount you need: Payday Loan Companies charge interest over a very short period of time. The average duration of a payday loan is merely one month. As such, it is in your best interest to decide upon the exact amount of money you require before applying for a loan. This will minimise any possibility that you will end up paying for more than you actually need.
Be aware of varying interest rates between lenders: Some payday lenders charge more than others. Payday Loans are a very unique form of credit and as such more traditional calculations like APR are unsuitable when it comes to calculating the exact amount you will be due to repay on your loan. The main figure you should be interested in when applying for a payday loan is the interest rate you will incur over the duration of the loan period. This is, more often than not, about 25%. Thus, the total amount you will be due to repay on a payday loan of £100 will be £125.
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