A payday loan is a good tool to handle unexpected financial blows. Emergencies such as car breakdowns and medical problems happen. Before hunting for a payday loan, keep reading for tips on getting your best deal possible.
Before applying for a payday loan, investigate the full range of other financing options that are available. It is better for your pocketbook if you can borrow from a family member, secure a bank loan or even a credit card. There are so many fees with payday loans that will be higher than any of the other options that may be available to you.
Make sure to find out all you can about the loan company you are considering. Don’t base your choice on a company’s commercials. Look for online reviews form satisfied customers and find out about the company by looking at their online website. Using a reputable company, will make the entire process easier.
Investigate the company doing the lending as thoroughly as you can when you’re looking to take out a payday loan. There are a plethora of options, and you need to be certain that you’ve chosen a company that will handle all your needs with care. Look for reviews from past borrowers for additional information.
Cash advances normally need to be paid back in two weeks. If something unexpected occurs, and you aren’t able to pay back the loan in time, you may have options. A lender may offer the option to roll over or extend payments but there are extra costs to doing that.
Figure out what the penalties are for payments that aren’t paid on time. Certainly, when you originate the loan, you expect to pay on time, but unexpected circumstances may crop up. In order to know what the fees are if you pay late, you need to review the fine print in your contract thoroughly. Taking out payday loans means that you’re dealing with high interest rates along with penalties if not paid back on time.
As with any purchase you plan to make, take your time to shop around. There are many lenders who offer services online as opposed to an actual store that you physically go into. Each wants you to choose them, and they try to draw you in based on price. If this payday loan is your first, you may qualify for further discounts with some lenders. The more options you examine before you decide on a lender, the better off you’ll be.
You need to be aware of what kind of documentation you need to obtain a payday loan. Most companies just require proof of employment and bank account information, but this could vary per company. You need to call the firm up before you go to find out what you should bring with you.
If you need a loan, but there are no providers near you, check out the border between states. Sometimes, you can actually cross into another state where payday cash advances are legal and get a bridge loan there. You’ll probably only have to make the drive once since they will collect their payments directly from your checking account and you can do other business over the phone.
Ensure that you are aware of the total amount you will owe. It’s common knowledge that payday loan providers charge extremely high interest rates. Payday lenders find many clever ways to tack on extra fees that you might not be aware of unless you are paying attention. These administration fees often are hidden in small print.
Application Process
Look at the Better Business Bureau’s website for information about different payday loan companies. Reputable and fair loan companies are out there, but there are just as many predatory companies, looking to scam you. If you find any complaints on the website, try to see if the company responded at all.
When you start the payday loan application process, be guarded about your personal information. You will be required to give the lender personal information during the application process. Verify that the company has a legitimate privacy policy and is a reputable lender.
If you have determined that a payday loan is your best choice then make sure the terms are in writing and that you clearly understand them and can live with them. Be careful, some scam payday loan sites take your personal information, then take money from your bank account without permission.
When securing your payday loan, take out the least amount of money possible. A lot of people experience emergencies in which they need extra money, but interests associated to payday cash advances could be a lot higher than if you got a loan from a bank. By getting the least amount possible, you can avoid high interest 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.
You need to choose a lender who provides direct deposit. You’ll get your money within a business day. This method allows you to save time at the bank and eliminates the risk of carrying a large sum of money with you during the day.
Check out the APR on the loan you’re about to take out. A lot of people forget to look over every little detail when getting a loan, and it’s very important to look over this because it will give you an idea of what you’re really going to be paying back.
Don’t worry about having to give your bank account number to a payday lender. Privacy issues can kill a loan opportunity. The point of you getting a loan is that you’re able to pay it back at a later date, which is why they need this information.
When you take out a payday loan, pay close attention to the amount of interest charged. Many companies tell you the effective APR upfront, but since payday loans are fee-based, the effective APR may not be readily apparent. Always make sure the potential of the high rates is at the forefront of your mind before taking out the loan.
Remember that cash advance loans are designed only for the most extreme of emergencies, such as urgent car repairs or avoiding eviction. These loans can trap you in a cycle that is very difficult to get out of. You won’t get as much money when you get your paycheck, and it makes it really hard to pay it back later on if you’re still short on funds.
If you are going to do business with a payday lender that works with you long-distance, such as over the phone or online, try and find one that does not require faxing. This information can be intercepted and used by identity thieves. The only option is to pay a high fee, per page, to have an office store fax your documents.
Payday loans are an expensive short-term solution to an unexpected event, such as a flat tire. Your rent might be due and you haven’t received your paycheck yet. Payday lending is available to bridge such gaps. Yet, even though they seem convenient, you need to look out for yourself. Take this information to heart and use it to your advantage in rising above your financial distress.
As you seek payday lenders, do not take your credit into consideration. They just want to know you have a job, how much you make and that you’re owed money. Some online sources do not even run credit checks, and instead rely on employment verification alone and offer $700 immediately to anyone.
