Need money now? Are your bills piling up? A payday loan may be your only choice. Even though payday loans may be an appropriate solution for you, it’s important to know all you can about them. Keep reading for some tips and information to help you decide whether to get a payday loan.
Take the time to do some research. Find a lender that fits you well. Compare rates of a few different lenders to ensure that you get the best deal possible. Of course, researching can take up valuable time, and you may need the money in a pinch. But it’s better than being burned. There are many online services that will help you compare companies.
When you get your first payday loan, ask for a discount. Most payday loan offices offer a fee or rate discount for first-time borrowers. If the place you want to borrow from does not offer a discount, call around. If you find a discount elsewhere, the loan place, you want to visit will probably match it to get your business.
Go to BBB.org to see what the Better Business Bureau has to say about the payday lender you are considering. There are lots of scammers out there who want to prey on the vulnerable. You should make sure you know if the companies you are considering are sketchy or honest.
If you are thinking that you may have to default on a payday loan, think again. The loan companies collect a large amount of data from you about things like your employer, and your address. They will harass you continually until you get the loan paid off. It is better to borrow from family, sell things, or do whatever else it takes to just pay the loan off, and move on.
Fees that are tied to payday loans include many sorts of fees. You will need to learn the interest amount, penalty fees and if there are application and processing fees. These fees will vary between different lenders, so be sure to look into different lenders prior to signing any agreements.
If you are considering getting a payday loan, make sure that you have a plan to get it paid off right away. The loan company will offer to “help you” and extend your loan, if you can’t pay it off right away. This extension costs you a fee, plus additional interest, so it does nothing positive for you. However, it earns the loan company a nice profit.
There are places you can turn to if you’ve had some past payday loan trouble. Such organizations work at no cost to you, and can help with negotiations that will free you from the payday loan trap.
Know what documents you need for a payday loan. Most companies require a current paystub, a valid checking account and proof of employment. Find out what your prospective lender requires and shorten the time it takes to get your loan approval.
If you are thinking about a payday loan, do as much comparison shopping as you can. There is tremendous variation in fees and interest rates from one lender to the next. Sometimes you may find a site that looks like a good deal, when in fact there is someone out there that offers a better rate. You should always do thorough research before getting a payday loan.
When dealing with a payday lender, keep in mind how tightly regulated they are. Interest rates are usually legally capped at varying level’s state by state. Know what responsibilities they have and what individual rights that you have as a consumer. Have the contact information for regulating government offices handy.
Understand the law. Imagine you take out a payday loan to be paid back with by your next pay period. If you do not pay the loan back on time, the lender can use that the check you used as collateral whether you have the money in your account or not. Beyond your bounced check fees, there are states where the lender can claim three times the amount of your original check.
As you know, the stress of being unable to meet your financial obligations can be enormous. This article should have given you the information you need to make a informed decision about whether or not to go with a payday loan.