Payday loans are popular but many people are uninformed about their true costs. Although the payday loans have a high rate of interest, they might help you if you have a urgent need for money. Continue reading for tips on how you can use a payday loan wisely.
Generally, payday loans must be repaid within two weeks of the closing date. Emergencies come up all the time and if you can’t pay your payday loan back by its due date, you don’t have to worry about defaulting. Many payday lenders offer a refinancing option.
Thorough research is always a must if you’re planning on applying for a payday loan. Opting for the initial lender you come across is not the best idea. Compare rates to see if you can get a better deal from another company. Making the effort to do your research can really pay off financially when all is said and done. You might even see all of this information on one website.
One way to make sure that you are getting a payday loan from a trusted lender is to seek out reviews for various payday loan companies. Doing this will help you differentiate legit lenders from scams that are just trying to steal your money. Make sure you do adequate research.
Before making the final decision on a payday loan company to go with, research the company on the Better Business Bureau’s website. There are a lot of sketchy companies out there scamming individuals who are really in need of help. Use the Better Business Bureau to confirm that the payday lender is reputable.
If you must get a payday loan, open a new checking account at a bank you don’t normally use. Ask the bank for temporary checks, and use this account to get your payday loan. When your loan comes due, deposit the amount, you need to pay off the loan into your new bank account. This protects your regular income in case you can’t pay the loan back on time.
Before taking out that payday loan, make sure you have no other choices available to you. Payday loans can cost you a lot in fees, so any other alternative could be a better solution for your overall financial situation. Look to your friends, family and even your bank and credit union to see if there are any other potential choices you can make.
If you have to get a payday loan, but they are not available in your community, locate the nearest state line. You may be able to enter another state that offers payday loans and get one 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.
In instances when you need money right away and there’s no additional way of obtaining it, a payday loan is a viable option. Taking out a payday loan is a decent option if you do not do it too often.