Avoid Problems with Payday Loan Lenders
If you find yourself short on cash when the bills are due, a payday loan may be the answer to your problems. The good news is, you have more options than ever before when it comes to securing a cash advance loan.
Applying for a loan can now be done online, making the process easier and more private. Many companies are competing for your business, and with so many lenders out here, it’s important to do your research and make sure you find the best lender for your needs. By taking the time to learn more about who you’re borrowing money from, you can avoid unfair fees, higher than normal interest rates on your loan, and even scams.
Beware of Scams
Let’s face it, you are providing personal information about your bank account and employment––you don’t want that information falling into the wrong hands. When you are thinking of applying for a payday loan, research the company offering you the money. Make sure the lender you apply to is licensed in the state in which they operate. You can also check with their local Better Business Bureau or Chamber of Commerce. Best of all––and perhaps most helpful––you can check online reviews from former customers. A quick Internet search can usually reveal plenty of information about a lender’s reputation.
Check the Interest Rate and Finance Charges
Because fast cash loans are for short periods of time, lenders earn their money by charging high interest rates. Rates from lenders can range from 300% to 750% or even higher. Shop around and secure the best rate possible. You should also check to see if your interest rate increases if you renew the loan, or pay it back late.
You may also be charged a finance fee as a cost of the loan. Again, shop around and compare prices between lenders. Be sure and read through all the terms of your agreement, and ask questions about anything you don’t understand so that you are not surprised by hidden fees later.
Educate Yourself on Fees
As with any loan, you’ll be charged a late fee if you don’t make your payment on time. Be sure you know what those fees are, as you can end up greatly increasing the cost of your initial loan if you can’t repay it as scheduled. Of course, the best policy is to pay on time, but if you can’t, make sure you aren’t creating even more financial hardship for yourself.
Find the Best Match for You
Take the time to do your research. You may need cash now—after all that’s the point of a cash advance loan––but because the Internet has simplified and expedited the process, you now have more time to do the proper research. Make lenders earn your business. Call them personally and evaluate your customer service experience. Research online and make sure they are a reputable company. Read through the terms of your loan carefully and look for any hidden or unfair fees. If you like the company and the terms are agreeable to you, then you’ve probably found the right payday loan lender.