If you are thinking about payday lending, read the fine print first. Never trust any company that tries to hide their fees. You have to pay on time and that money should only be used for the original purpose you stated.
One consideration to bear in mind about payday loans is the interest; it is often very high. There are times where a particular company might have interest rates as high as 150% – 200% for extended periods. Such lenders exploit legal loopholes in order to charge this type of interest.
The usual term of a payday loan is two weeks. If you find yourself unable to repay your loan within that time frame, you won’t necessarily go into default status. A lender may offer the option to roll over that will let you get an extention but it might cost you.
All payday loan agencies aren’t created equal. You need to educate yourself about as many lenders as you can so that you can get the best rate.
Refrain from being dishonest when you apply for payday loans. Lying on your application might be tempting in order to get a loan approved or a higher loan amount, but it is, in fact, fraud, and you can be charged criminally for it.
You should contact the BBB for information from your local Better Business Bureau to make sure your payday loan company before you decide to use that company.
Do some shopping around in order to get the lowest interest rate. There are many lenders who offer services online too.They are all in it for the money and want to get your business so they have very competitive prices. Some lenders give out significant discounts when it comes to first time borrowing. Check all your options prior to choosing a lender.
Look into the payday loan company’s policies so you are not surprised by their requirements. Many of these companies not only require that you have a job, but that you have had it for at least 3 to 6 months. This helps ensure that you have the income available to pay back the loan.
Keep in mind that cash borrowed via a payday loan will have to be repaid fast. You might need to make sure you will have enough money to pay the entire loan off in two weeks. The only exceptions is if your next payday lands less then a week after you take out the loan. Then it will become your due date.
If you can’t find a payday loan where you live, but your community does not allow them, go to a nearby state. You may be able to enter another state line and obtain a “bridge loan” on the other side. This sometimes just need one trip since they electronically recover their funds electronically.
Be sure that your work history makes you qualified to receive a payday loan. A lot of payday loan places want you to be working for three months before giving you any money. Most companies want proof of employment, like pay stubs.
Make sure you understand all the terms of a loan before you sign any paperwork. It is not uncommon for lenders to expect you to be employed for no less than 3 months.They want assurance that you will be able to repay your debt.
If they are so technologically challenged that they do not offer this service, you may want to avoid them since they are behind in the times.
Look at the Better Business Bureau’s website for information about different payday loan companies. Though lots of trustworthy payday lenders exist, many do have their problems. If there are filed complaints, be sure to read what that company has said in response.
Don’t run away from any payday lenders if you slip further into debt. If you are unable to repay your payday loan as agreed, try to get an extension.
If you have decided to move forward with a payday loan, please be sure to get everything in writing before you sign a contract.
Make sure you don’t lie when you’re filling out the payday loan application. Although it seems like it could get you a better loan, it could get you into even deeper financial trouble. Using deception on your loan forms will only cause issue if discovered, and hurt your chances for money now or in the future.
There are those out there that cannot count on a steady income. If something goes wrong and the money you thought was going into your account gets delayed for any reason, you could owe the loan company more.
Always keep a solid repayment record of timely payments with your lending company. This will allow you can get a future loan for the amount that you receive. Use the same company each time you take a history of payment.
Never use a payday loan unless it is the last resort. They can cause more trouble than they cure. The contracts that lenders require you to sign are very strict and are hard to get out of. Use your best judgement and find other ways to pay your bills other than using payday loans.
Payday advances can be a lifeline for people with bad credit who run into an emergency situation. You should never depend on these loans for everyday expenses or to just have more money on hand. Getting cash advances too often can end up being a vicous cycle if you are not careful.