Payday loans should only be used for circumstances that are serious. These types of loans can be helpful if an unexpected plumbing problem occurs or in the case of a short-term medical situation. Before applying for a payday loan, read the smart tips presented here!
Call around and find out interest rates and fees. Most payday loan companies have similar fees and interest rates, but not all. You may be able to save ten or twenty dollars on your loan if one company offers a lower interest rate. If you often get these loans, the savings will add up.
Beware of falling into a trap with payday loans. In theory, you would pay the loan back in one to two weeks, then move on with your life. In reality, however, many people cannot afford to pay off the loan, and the balance keeps rolling over to their next paycheck, accumulating huge amounts of interest through the process. In this case, some people get into the position where they can never afford to pay off the loan.
Some payday lenders are shady, so it’s in your best interest to check out the BBB (Better Business Bureau) before dealing with them. The Better Business Bureau can give you information about customer complaints and how the payday loan company handled those complaints.
Be very careful rolling over any kind of payday loan. Often, people think that they will pay on the following pay period, but their loan ends up getting larger and larger until they are left with almost no money coming in from their paycheck. They are caught in a cycle where they cannot pay it back.
Learn about late payment penalties. You never know what may occur that could keep you from your obligation to repay on time. Be certain to read all the fine print in the loan contract so that you will be fully aware of all fees. Chances are, the penalties are high.
Make sure that you understand all the terms of a loan before you sign any paperwork. Many companies don’t just require you having a job, but you need to have been at it for about three to six months. This increases the lender’s confidence that you’ll be able to repay the loan.
If you have applied for a payday loan and have not heard back from them yet with an approval, do not wait for an answer. A delay in approval in the Internet age usually indicates that they will not. This means you need to be on the hunt for another solution to your temporary financial emergency.
A better alternative to a payday loan is to start your own emergency savings account. Put in a little money from each paycheck until you have a good amount, such as $500.00 or so. Instead of building up the high-interest fees that a payday loan can incur, you can have your own payday loan right at your bank. If you need to use the money, begin saving again right away in case you need emergency funds in the future.
A great tip for those of you looking to take out a payday loan is to find a lender that is not opposed to working with you if any hardships come your way when it is time to pay back your loan. Certain lenders are nicer than others when it comes to falling behind on the loan.
If you need a payday loan, but have a poor credit history, you may want to consider a no-fax loan. This kind of loan is just like any other payday loan, except that you will not be required to fax in any documents for approval. A loan where no documents are involved means no credit check, and better odds that you will be approved.
For people who get stuck in a position where they have more than one payday loan, you need to consider alternatives to paying them off. Think about using a cash advance off your credit card. The interest rate will be lower, and the fees are significantly less than the payday loans.
When applying for a payday loan, the loan officer request that you provide a government issued photo identification card or driver’s license, a current utility bill showing your address and a recent paycheck stub. The address shown on your identification, utility bill, paycheck stub and personal check must all be listed to your home’s physical address.
To save money towards your payday loan, try selling items from home you never use anymore through online sites like eBay and Amazon. Although you may not think you have many valuable items to sell, you most likely do. Look through your book collection, cd collection, and other electronics. Even if you can only make a couple hundred dollars, it can still help.
If you are working with a lender that requires documents to be faxed, be aware that faxing can often be costly if you do not have the means to fax from your home or office. Certain lenders require you to fax actual documents, but doing so may be quite inconvenient for you. Most business charge for each page that must be faxed. This can add up very quickly when faxing your documentation.
Having to get a payday loan is usually an unplanned response to a sudden event, which can range from car trouble to medical problems. Perhaps you have to pay the rent a few days before your paycheck is deposited. Payday loans are a means to get you through those gaps, however you should still be wary. Remember what you have learned and your payday loan experience should be a painless and beneficial experience.
