Were you able to pay for everything you needed this week? Does a small loan seem to be the thing you need? A payday loan might be just what you need. The article that follows will give you things you need to know when you’re thinking about getting a payday loan.
- Fees associated: You should be aware of the fees associated with a payday loan. You know you need money but be smart about signing with a payday loan agency. Demand a list of all fees that you are held responsible for, from the lender. Make sure this happens prior to submission of your loan application so that you do not end up paying lots more than you thought.
- Pick a company: Make sure to research any loan company you consider doing business with. Don’t just pick a company because of their commercials. Take your time and adequately research to the best of your ability. Stick to a reputable company which will give you some peace of mind.
- The best deal: Do your research before choosing a payday lender to make sure you get the best deal. Many options are available, and you must be sure that the company you deal with is legitimate, well-managed and will handle the loan fairly. Use the Internet to thoroughly research what other customers have to say about a company before signing a contract.
- Follow the rules: Most payday loan companies require that the loan is repaid 2 weeks to a month. The loan should be repaid in two weeks or less. This rule could be altered in the event that you are getting paid in less than two weeks from when you get the loan. The loan will actually be due to the following payday, to give you a reasonable amount of time to repay the loan amount back.
- payday loan company’s services: If you are looking for the cheapest payday loan, look for a loan that is direct from the lender and not an indirect loan from a lender who lends someone else’s money. The brokers are in it to make money so you will be paying for their services as well as for the payday loan company’s services.
- automatic additions: Watch out for automatic additions of finance charges to future pay periods. What happens is that people end up paying the fees and charges, without paying for the original loan. Believe it or not, someone choosing this type of rollover loan could end up paying a 500% markup before getting the loan paid off.
- Borrow the least amount: If you are looking for a payday loan, borrow the least amount you can. Many people have emergencies come up and need extra cash, but the interest rate on a payday loan is much higher than what you would pay to a bank or credit card company. Avoid paying high fees by only borrowing exactly what you need.
- Long as you have a job: Don’t think that your bad credit prevents you from getting a payday loan. Many people that could benefit from these loans don’t even bother applying due to their poor credit. In truth, most payday lenders will work with you, so long as you have a job.
- Work history: You must be certain that you have sufficient work history when applying for payday loans. Many lenders will need to see proof of a minimum of three months worth of employment before granting a loan. You must provide the lender with acceptable proof, like stubs from your paychecks.
- Rates and fees: In addition to the interest rates and fees that come along with a quick loan, you should think about your bank account being overdrawn. A bounced check or overdraft can add significant cost to the already high-interest rates and fees associated with payday loans.
- Reputable companies: Check the quality of your loan before you apply to it. A lot of people think that loans from reputable companies provide the best terms. It could work out well if you take the time to search for an honest payday loan company that offers safe loans.
- Before you request: Research all the options before you request a payday loan. It may not seem as if you can afford to do any research since you need the cash right away. One of the features of payday loans is their speed. It is often the case that the money is provided on the same day that the application is turned in. Search online to find the cheapest rates, to discover lender complaints on the website of the BBB, and to determine if you can find other methods of obtaining the money you need without having to pay high payday loan fees.
- Good thinking: Stop and think about what you are doing when you are taking out a payday loan. Be mindful that typical APRs on payday loans may range from 378% to 780%. Consider that borrowing $500 for a period of two weeks may cost about $125. If you absolutely have no other options, you may have to decide that it is worth the price you will pay.
- The terms and rates: Always know the terms and rates that will be applied before you proceed with any application for payday loan funding. You run the risk of being liable for the loan once they process the paperwork, and you could be stuck paying back something with very high rates.
- Ave a close friend: Avoid taking out a loan from lenders that charge you more than twenty percent of what you’ve borrowed. Payday loan rates are quite high, but they should never be higher than this benchmark. Before you apply to receive a payday loan, weigh all other options. You may have a close friend who can help, or perhaps you can negotiate a payment plan with your creditors. If you do not have funds put away for an emergency, you may need to take a payday loan for now.
Some payday loans are available with minimal to no paperwork. The fees and interest will be steeply higher. This will result in a much higher total bill. Are payday loans for you? They may be what you need when your cash is a bit tight. Apply the ideas and information provided in this article to get the money you need and can live with. Financial stress can be a thing of the past now!