If you are strapped for cash, you might have found the thing you need! A quick solution for a short term crisis may be a payday loan. That said, you need to get educated before taking out a high-risk loan like a payday loan. Read here about the things you need to make an informed decision.
In order to avoid excessive fees, shop around before taking out a payday loan. There may be several businesses in your area that offer payday loans, and some of those companies may offer better interest rates than others. By checking around, you may be able to save money when it is time to repay the loan.
Before making a decision on who to get a payday loan with, be sure to research if the company is reputable. This can be done on the Better Business Bureau website. Many shady companies are just waiting to fleece unsuspecting people who are in dire need of assistance. Make sure you do your research to see if you are dealing with a legitimate lender.
If you do not have sufficient funds on your check to pay back the loan, a payday loan company will encourage you to roll the amount over. This only is good for the payday loan company. You will end up trapping yourself and never being able to pay off the loan.
Evaluate alternative lending options before deciding to apply for a payday loan. It is less expensive to get a loan from a bank, a credit card company, or from family. The fees associated with these choices are usually a lot less than using a payday loan.
If you are signing up for a payday advance online, only apply to actual lenders rather than third-party sites. The Internet is filled with websites that use your personal information to find you a lender, which can be dangerous.
Because lenders have made it so easy to get a payday loan, many people use them when they are not in a crisis or emergency situation. This can cause people to become comfortable paying the high interest rates and when a crisis arises, they are in a horrible position because they are already overextended.
Look for different loan programs that might work better for your personal situation. Because payday loans are becoming more popular, loan companies are stating to offer a little more flexibility in their loan programs. Some companies offer 30-day repayments rather than one to two weeks, and you may qualify for a staggered repayment plan that can make the loan easier to pay back.
If you are in the military, you have some added protections not offered to regular borrowers. Federal law mandates that, the interest rate for payday loans cannot exceed 36% annually. This is still pretty steep, but it does cap the fees. You should check for other assistance first, though, if you are in the military. There are a number of military aid societies willing to offer assistance to military personnel.
Being aware of the conditions of the payday loan can help you make a good choice. Use these tips to become more informed about payday loans so that you may get them without making your finances worse later on.