Loan rankings are a great tool for those who intend to take advantage of the payday loans offer for the first time, but also for those who are still looking for the best loan for themselves. The very word ranking reminds you that the loans included in it will be the best in all respects and you can use them in the dark without much thought. Will this really be the case, and the ranking will serve everyone without a borrower? And can you really count on the conditions in honored companies to be the best?
Why use a loan ranking?
The number of loan companies and the brands they own is very large – there are even several dozen leading and active in the whole country (and even the world!). No wonder it’s hard to orientate in all offers and choose the most advantageous one. The ranking usually selects the top 10 or 20 in the opinion of the creators of the ranking and substantive analysis of many components of the loan. The ranking will also allow you to adjust the appropriate loan to your financial capabilities and creditworthiness, the more so because thematic rankings are often created, divided into e.g. free payday rankings, installment loans and loans without BIK.
The above-mentioned features are important for a beginner borrower, but they are not all that he should take into account. While these most-popular companies can appear in advertisements or online articles, there are a few certain features of a good payday loan that the borrower may not be able to check for himself. First of all – it’s the topicality of the offer. The specialists creating the rankings must be up to date with the changing conditions and policies of the company, so the borrower will not meet any unpleasant surprise. Secondly, the average borrower may not be able to verify the credibility of the loan company, so he does not know if he will be a victim of fraud. The loan ranking reduces this danger to practically zero. Third and last – not everyone interested in payday loans must have adequate economic knowledge to effectively compare the financial conditions offered by lenders. Thanks to the ranking created by industry experts, he can trust that a given loan is profitable from a purely financial point of view.
How are rankings determined?
For many borrowers, the cheapest loan is the best. Meanwhile, most payday loans have more or less comparable costs in which the deviations from the norm will be 1 or 2 percentage points. Few brands such as Pivus (as well as Kuku, for example) go below this level. Therefore, the loan ranking is not only based on the price criterion, but also takes into account other factors. These will include:
• availability of free payday loans;
• other costs: for extension or refinancing, penalty fees;
• repayment period;
• the amount of available amounts;
• company credibility;
• the way the company operates;
• customers opinion;
• transparency of the offer;
• additional options;
• requirement for borrowers.
As you can see, the loan ranking is a tool that approaches loans in a holistic way and takes into account things that the borrower might not have thought of before. And most importantly – it promotes thinking that the cheapest loan will not always be the best one. Of course, the level of costs is important, but only if it goes hand in hand with the borrower’s real security. It’s good to remember that.