The best payday loans are arguably the ones which are best able to assist and support the current day short term borrowing needs of consumers. With that in mind it is important however to remember that not all consumer needs, either now or in the past, are the same. This is why the best payday loans need to offer flexibility and this is delivered via choice. Payday loans have changed a great deal over the years and the product which is available today is in fact very different to the product which was offered in the early years. This is a positive thing and means that in the modern day market for short term borrowing the best payday loans to date are what currently exists. A payday loan can be defined as a means for borrowing a small sum of money, repayable over a pre-agreed period of repayment. By small, loans in this market usually range from £50.00 and then can be for as much as £500.00. The average loan of this nature is usually for amounts around the £300.00 mark. Ultimately the deciding factor of the best payday loans is that of their ability to offer choice when it comes to their repayment options.
Over the years the terms of repayment offered by the best payday loans has certainly evolved. In the early days of trading the market offered a very specific type of borrowing, which saw customers be offered a single option repayment choice. This type of repayment actually created the name by which many consumers to this day still use and this was that of the ‘payday loan’. The payday loan very simply allowed customers the ability to repay their loan on their next employment pay date. This meant when borrowing in this manner, customers would often have to plan for a sizable financial commitment. This is because the repayment amount due would be reflective of the loan value and also the interest charged by the lender for borrowing. Those who were not later able to repay the one-off repayment amount due to clear the loan, faced restricted and costly alternative repayment options.
This is why arguably the best payday loans are those which have in many ways replaced the classic payday loan described above. The modern day version of these loans is the same in terms of the product offering, it is the repayment terms now available which are much more realistic and as such, customer friendly. This can be attributed to the fact that in today’s market instalment based repayments are vastly more available. The introduction of instalment based borrowing has seen many customers move to this type of product and in doing so leave the payday loan model in the past. Thanks to repayment options starting from as few as 2 months and then extending monthly through to as many as 12 months, instalment loans are quickly becoming the best payday loans in the eyes of consumers. Allowing customers to select an affordable and realistic repayment term and therefore amount, seems to be the key to their success.