What Everyone Should Know Before Getting A Payday Loan

Mar 17, 2016


If you are having financial issues and are in desperate need of money, it's important that you know what choices you have. Some people think payday loans are a fast answer. This article contains all the information you need to decide if a payday loan is right for you.

Depending on state, payday loan companies either have exceptions to usury laws carved out just for them, or flout usury laws through creative loan structuring. Fees will add up to nullify a low interest rate. This is why payday loans are typically ten times more expensive than traditional loans.



The standard time to pay back a payday loan is two weeks. Things happen; sometimes you may not be able to come up with the cash to resolve the loan by its due date. Don't worry about being in default. Many lenders offer a roll-over option so that you can get more time to pay the loan off. However, you will have to pay extra fees.

Do not apply for a loan without documentation. You will need a few things when you go to get the loan. You'll need recent pay stubs, official ID., and a blank check. However, requirements are different for every company. Call them before you go in to see what they need you to bring in.

Do not sign a payday loan that you do not understand according to your contract. Any company that will not disclose this information up front is possibly a scam and you could end up with hidden fees and charges you had no idea about.

A lot of payday loan institutions out there make you sign a contract and you will be in trouble down the line. In many cases, bankruptcy will not result in the loan being discharged. The borrower will also be forced to agree in writing that he/she will not file a lawsuit against the lender to resolve any potential disputes.

Use a payday lender who does instant approvals as opposed to making you wait for days. In today's digital world, if it's impossible for them to notify you if they can lend you money immediately, their business is so outdated that you are better off not using them at all.

There are organizations that can assist you in making arrangements to pay off your overdue payday cash advances. They offer their services for free and will help negotiate a lower interest rate or a consolidation so that you can get out of the vicious cycle of payday loan payments.

Verify that you are clear on the exact date that your loan payment is due. Cash advance loans have very high interest rates, and providers often charge extortionate fees for late payments. This is what makes it so important for you to get your loan completely paid off on its due date, if not before.

When getting a payday loan, ensure you give the company all the information they require. Proof of employment is important, as a lender will generally require a pay stub. Make certain your phone number is correct so that they can call you. If any of the information is wrong, it will only end up costing you valuable time as they try to process the loan.

You will probably incur many fees when you take out a payday loan. If you are taking out $200, the lender may charge $30 for a loan lasting just a few weeks, for example. The interest on this fee is 400% per year! If you don't pay it back, the fees go up from there.

If you find that you can't pay back your payday loan on the agreed date, you should not hide from lenders. Sometimes, you could get an extension, as hiding will lead to harassment. So, if you're not able to get this loan paid off, you need to get on the phone and speak with the provider about getting an extension.

Those aiming to apply for payday cash advances should keep in mind that this should only be done when all other options have been exhausted. Cash advances carry very high interest rates which actually have you paying close to 25 percent of the initial amount of the loan. Look at all other options before you decide to apply for a payday loan.

Check out potential payday loan lenders at the BBB, or Better Business Bureau. You may find many solid payday lenders; however, they may not necessarily be trustworthy. Check out complaints and see which firm is the best choice.

Before agreeing to a payday loan with a company, make sure you research all you can about them. You may think a payday loan is the only way out of your financial problems, but it's still important to know what you're signing. Research the company's feedback and history to avoid owing more than you expected.

Payday advances have an average APR of 651.79%. Although states have different averages, this is the national average, which is extremely large. You might not see this large of a number laid out in your loan contract. However, this doesn't necessarily mean you are in the clear. Perhaps the information is simply among the small print.

A lender will most likely have access to your bank information when you get a payday loan. This is important to be cognizant of. Borrowing through an unrespectable lender could land you in more financial trouble than you might ever expect.

Make sure you know what interest rate you will be charged for the loan. This is sometimes clearly written on the fine print, and other times it is not. Always keep this in mind when you are considering getting a payday loan.

Be wary of payday loan scams. Often these scammers can be identified by having names similar to reputable companies, offering loans by telephone, or telling you they do not care about your credit rating. They are just trying to collect personal information, generally for reasons related to identity theft.

If you are feeling stressed about money, hopefully you were able to obtain some help from this article's tips that can help you through some of the financial stress. If you're thinking about getting a payday loan, it's crucial that you know what they are all about so that you make ideal choices.