If you are thinking about payday lending, read the fine print first. Never put your trust any company that tries to hide their high interest rates or fees. You have to pay on time and that money should only be used for the original purpose you stated.
Keep in mind that the typical payback time for payday loans is approximately two weeks. Sometimes, problems occur in our lives, and if you discover you can’t pay back a loan in time, you don’t have to worry about defaulting. A lot of lenders will allow you “roll over” your loan and extend the repayment period; some even do it automatically. Just be aware that the costs associated with this process add up very, very quickly.
Payday Loan
If you find yourself in the midst of a financial emergency and are thinking about applying for a payday loan, understand that you will be paying a great deal of interest with a payday loan. There are some companies that will charge you an interest rates as high as 150% – 200% for extended periods. Payday lenders rely on usury laws.
Be sure to look into the guarantees that payday loan companies make to you. As you might imagine, these are many predators out there in the water, all looking to rob you blind. They take advantage of desperate people who don;t have other options. In most cases, guarantees made by a payday lender contains disclaimer language that significantly reduces the value of these guarantees.
Do your homework with regard to the company you’re looking at getting a loan from. Do not just because they seem honest in their advertising.
Make sure you know exactly how much a payday lender plans to charge before you get one. It can be shocking to see the rates some companies charge for a huge shock to find out how expensive this type of loan is. Don’t be afraid to ask the interest rates for a payday loan are.
Compare prices before choosing a payday loan company. Some may offer lower interests rate or lower fees so you should weigh your options before deciding on one. Some services will give you the money right away, while others require you to wait a day or two. Shop around and compare interest rates to find the best option available.
Never lie to the payday loan. You may be tempted to lie a little to make your chances of getting the loan better, but you may end up with jail time instead.
Payday Loan
If you decide to take out a payday loan, make sure to use a reputable company. Many individuals pretend that they are a reputable loan company, but are actually just out to rip you off. If you are interested in a particular company, visit Better Business Bureau’s website to research their credentials.
Always make sure you’ve exhausted other loan options before considering a payday loan. It is going to be much easier on your bank account if you can get the loan from a friend or family member, from a bank, or from family. The fees involved in these alternate choices are always far less than you will find with a payday loan.
Understand all of the penalties for late payments. When accepting a loan, you may think you’re going to be able to pay it back when it’s due, but bad things happen sometimes. Read any fine print on the contract so that you are fully aware of late fees and penalties. The fees associated with cash advances are quite steep.
If you discover that taking out a payday loan was a mistake for you, learn from it. Once you receive and repay such a loan, you might feel a sense of resentment over how expensive it actually was. Make use of this anger as a tool to motivate you to save more money when it comes to your paycheck, in order for you to have money if ever an emergency arises.
Do not be alarmed if the loan company requests your bank account information. A lot of people don’t want to share this information so they are wary about giving out their bank account number. The reason payday advances is that the company auto-debits the money once you get your account on the due date.
For the millions of people with less than perfect credit these days, cash advance loans are sometimes a valuable resource when unexpected needs arise. However, it’s not a good idea to get a payday loan if you need help paying for something you really don’t need. Taking on too many loans too often can have real financial repercussions and lead to a rather vicious debt cycle.
Payday loans might not offer you a lot of money, but you still need to avoid taking out a larger loan than what you can pay back. Many lenders will offer more money than you can afford. That means more money for them in the end.