As with many industries, there is a battle being waged by those payday loan companies who operate online and those who are purely offline. Whilst some borrowers are happier using a bricks and mortar business that they can visit and sit face-to-face with, others enjoy the convenience that the Internet provides. However, when it comes to providing value, which is best – payday loan shops or online lenders?

Internet traders, in all guises, have a major advantage over their offline competitors – a lack of overheads. Maintaining individual shops throughout the country costs money. As well as the upkeep costs of the premises, businesses are also reliant on staff, who also need to be paid and trained. Those who operate solely or even just predominantly online simply don’t have this problem. The benefit of this is that more of their income is converted into profit, which means that they can pass savings on to customers – effectively cutting costs.

Within the payday loan industry this can certainly be the case. High street lenders will often need to recoup money, which could mean that interest is increased or one-off charges applied to your application. This isn’t always the case of course; there are exceptions to every rule. But it is certainly well worth comparing the two and seeing which one can offer the best deal before you commit to either.

Of course any kind of comparison can be done much easier online. If you’ve got more than a couple of payday loan companies on your high street then you can count yourself lucky. This limitation means that you have a very narrow basis for comparison. The Internet though has dozens of companies all competing for your business. This not only makes it easier to weigh up the options, but also allows for greater competition and improved service in many cases.

When you head online, you can approach a vast array of payday loan companies individually or you could choose to use a broker. By opting for the latter option you have the opportunity to see what a range of lenders can offer and only complete a single application form. There should be no charge for carrying out this service, but it can really help you to find a decent rate and also increases your chances of being accepted. This is particularly helpful for those who may have been rejected previously.

Even as you carry these online searches you will no doubt become aware of the difference in interest charges and the kind of services companies offer. For example, you might find that some charge a daily rate of interest (usually around 1%) whilst others prefer to have a set rate (anywhere between 15 and 30%). Theoretically both of these could prove to be the better option, depending on your situation. So it’s always worth evaluating what you want, how long you need to borrow for and what you can afford to repay before you start your hunt for a loan. This can help you to cut down on costs and also avoid any expensive mistakes.

Whether you choose to use a high street lender or an online payday loan company will ultimately come down to what you feel most comfortable with. Whilst you might get a better deal on the Internet, you might prefer the personal nature of face-to-face borrowing over the faceless, voiceless alternative. Both are equally secure though, so this shouldn’t really become a factor. If you are concerned, always look for industry accreditations and ensure that they hold the relevant lending licences before using any company.

Vincent Rogers is a finance writer who writes for a number of finance businesses. For reliable payday loans, he recommends http://Paydaypower.co.uk

Vincent Rogers is a finance writer who writes for a number of finance businesses. For reliable payday loans, he recommends http://Paydaypower.co.uk

Author Bio: Vincent Rogers is a finance writer who writes for a number of finance businesses. For reliable payday loans, he recommends http://Paydaypower.co.uk

Category: Finances
Keywords: payday loans, same day loans, loans, UK, finacne