Are you having trouble paying a bill right now? Do you need a few more dollars to get you through the week? A payday loan may be what you need. If you don’t know what that is, it is a short-term loan, that is easy for most people to get. However, the following tips inform you of some things you need to know first.
Make sure that you understand exactly what a payday loan is before taking one out. These loans are normally granted by companies that are not banks; they lend small sums of money and require very little paperwork. The loans are accessible to most people, although they typically need to be repaid within two weeks.
Generally, payday loans must be repaid within two weeks of the closing date. If you find yourself unable to repay your loan within that time frame, then you should contact the lender as soon as possible. Lots of companies will provide you with an option to “roll over” your loan, which allows the loan to be extended. However, you still might incur some fees.
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.
A poor credit score usually won’t prevent you from taking out a payday loan. Lots of people who could use a payday loan don’t bother because of their poor credit. If you have a regular job, you can still get a payday loan regardless of your credit.
If you are having trouble paying back a cash advance loan, go to the company where you borrowed the money and try to negotiate an extension. It can be tempting to write a check, hoping to beat it to the bank with your next paycheck, but remember that not only will you be charged extra interest on the original loan, but charges for insufficient bank funds can add up quickly, putting you under more financial stress.
Avoid using a high-interest payday loan if you have other options available. Since a payday loan comes with with a very high interest rate you may end up repaying as much as 25% of the initial amount. Before taking out a payday loan, think about other options.
You can find a lot of the information for certain companies with the Better Business Bureau. Before you sign any loan papers, contact the Better Business Bureau so you can find out if any complaints were filed against the company. If you find negative ratings for companies, look elsewhere.
If you make the decision that a short-term loan, or a payday loan, is right for you, apply soon. Just make sure you keep in mind all the tips in this article. These tips give you a solid foundation for making sure you protect yourself, so that you can get the loan and easily pay it back.