Payday loans are considered the saviour when you need money to fund your emergencies. These loans come in handy when you need money urgently and you have a bad credit rating.

Most of the borrowers find it harder to qualify for a loan at affordable interest rates. If you have a bad credit rating, chances are very bleak that any lender will entertain your application.

Here comes in payday loans. These are small loans that you can turn to when you are running out of money. The repayment length of these loans is not more than 14 days, typically supposed to be paid back on your next payday.

These loans seem to be very affordable but they might not be. It is always suggested that you do proper research before taking out these loans. Payday lenders do not run a credit check and therefore these are signed off on as faster and sooner as possible.

In other words, you can address them payday loans with no credit check or simply no credit checks loans. Since a lender does not run a credit check, they cannot have an idea of your past payment behaviour.

Your credit score is already bad, so they will likely assume your past payment tracks cannot be good at all. A poor credit rating shows you do not manage your financial obligations so well.

Loaning you money means taking on high risk and they will likely charge high interest rate to lower down the risk they take up.

How to find the best payday lender?

There is no doubt that these loans are very expensive. You might think that you can get rid of them once and for all. However, the fact is that you struggle to make payments on the due date and then end up rolling over the loan.

This adds up to the cost of the debt, making it more difficult for you to pay back the debt. However, sometimes you apply for these loans when you are in dire need of money and manage to pay them back on time.

You would still want to apply for these loans from a reputed payday lender that lends money at the most competitive interest rates. Here I how you can find the best payday lender:

> Do online research

The first thing you need to do to get the best online lender is you should do online research. Not until you research will you be able to find a reliable payday lender. It is essential for you to understand that there are some payday scammers.

They can charge outrageously very high-interest rates. You can prevent yourself from these swindlers only when you do some online research. Try to apply for these loans directly from their official website.

There are some third-party companies that generate prospect leads for them. Your data could be stolen from these websites by scammers who can daunt you being a legal advisor of a payday company from which you had taken out a loan.

In some cases, they could even ask for the debt payment that you never took out from a company or that you had already settled a long time back. You can avoid being taken for a ride by doing some research.

Another essential thing to note is that the APR could vary by payday lenders. This could go from 400% to 521%. Make sure that you peruse the APR of a payday loan. Choose a lender that charges the lowest APR.

Remember that the APR and interest rates are both different. Processing fees, monthly fees, late payment fees, and additional charges add up to APR. Therefore, it is higher than the interest rate.

> Look for registration

You should look at the registration detail to find the best payday lender. Lenders are supposed to be registered with Financial Conduct Authority (FCA). Payday lenders registered with FCA are genuine and legal. They will not lend money over and above the capped interest rate.

You can easily find out whether or not a lender is registered with FCA by visiting the official website of a lender. The alternative way is to go to the official website of FCA and type the lender’s company name or domain name. You will get the registered number.

Chances are you come across an unregistered payday lender. You can borrow money from them, provided they do not charge over and above the capped interest rate. A payday lender could charge a maximum interest rate of up to 0.8% per day.

If someone is charging more than this, you should avoid them. You could fall into an endless circle of debt if you fail to pay it back on time. You should be very careful at the time of applying for payday loans.

> Look for a lender with flexible payments

When it comes to taking out a guaranteed payday loan from a direct lender, you should look for flexible payments. Most of the lenders will require you to pay back the debt in a lump sum within a period of 14 days, even if you owe up to £500.

It can be pretty challenging to repay this much money outright. There are some lenders that stretch repayments over a number of weekly instalments. They may ask you to pay down the debt in either two or four weekly payments.

Paying down the debt on time will be much more manageable, so try to choose a lender that lends money with flexible payments.

The final word

Finding the best payday lender is not a cinch. You will have to do a lot of research to choose a reliable lender. A rule of thumb says that you should borrow money from the one that has a reputation and is registered with FCA.

If you are borrowing from an unregistered lender, make sure that they do not charge more than 0.8% per day. It is better if you borrow money with a flexible payment method.