If you are chained down by a payday loan, it is highly likely that you want to throw off those chains as soon as possible. It is also likely that you are hoping to avoid new payday loans unless there are no other options. There’s also the possibility you are just researching and have never needed one, but you are looking into it just in case. Before you apply for any type of loan, no matter what your circumstances, some solid advice on the subject should help you make the right choice.
Once you come to the conclusion that you need a payday loan, your next step is to devote equally serious thought to how quickly you can, realistically, pay it back. Payday loans typically have high interest rates and excessive fees which quickly add up if not paid on time.
There are times when individuals would find themselves needing money and there’s no other choice but to take a payday loan. It is best to avoid this type of borrowing if at all possible. Go to your friends, your family and to your employer to borrow money before applying for a payday loan.
Do not take out multiple payday loans. Don’t visit more than one company to get money. You’ll end up not being able to pay back all of the money, regardless of what your salary might be.
When you apply for a payday loan, you need to be truthful on your application. If you lie on your application, you may think you’re getting a bigger loan. This may happen, but it’s more likely you’ll get in trouble for fraud and that’s a criminal offense.
The loan amount you may qualify for varies from company to company and depending on your situation. This will depend on the amount of money you make. Your lending institution will review your earnings to determine the size of the loan you qualify for. If you need a payday loan, this is an important fact to consider.
Borrowing directly from the payday loan company. Indirect loans have considerably higher fees because they add on fees for themselves.
There are many penalties for not paying on time, and you should be aware of this. There is no doubt that you have every intention of making your payments on time, but circumstances can change. You must read the fine print of your loan contract to understand what the fees will be if you are late. When you don’t pay on time, your overall fees will go up.
Only do business with payday lenders who have direct deposit possibilities. Generally, the funds will show up into your bank account within one day. In addition to the convenience factor, it means you don’t have to walk around with a pocket full of someone else’s money.
The payday loan company will usually need your personal bank account information. Some people decide against getting the loan because this is information they do not want to give out. Remember, you need to have the means to pay back the lender, that is the entire point of the loan.
Only utilize payday loans if you find yourself in a true emergency. These type of loans can cost you a lot of money and entrap you in a vicious cycle. Often, companies invite you not to pay back these loans until they are so far out of control that there is no way to pay them back.
It is important to remember the payday loan average interest rate is 651.79%. This varies from state to state, but the national average is that high. Of course you are not likely to see a number that scary listed in your loan paperwork, but that does not mean you will get a better deal. Many costs and expenses are hidden in fine print or in complex terminology.
If you’re going to get a loan from a payday company that is far from you, try to look for someone that will not require you to use a fax machine. It is possible to fax paperwork to companies who allow it, but anyone who doesn’t have their own machine may be spending unnecessary money they can’t afford to spend. It may cost you anywhere from $1 to $5 per page to fax your documents from a local business.
Payday loans should always be viewed as an expensive short-term solution. If you don’t have enough money to pay off your expenses in the future, then you should consider debt counseling or living on a strict budget so that you can better manage your money.
You should know that most payday loans have very high interest rates. If possible, try getting the money from a different source because it isn’t common for annual rates to be over 300%. If a payday loan is necessary, make sure to do your research and read all the fine print.
When you’re trying to get a payday loan, you shouldn’t worry about the credit score you have. All payday loan companies need to know is if you have steady income and are able to pay the loan back when you get paid next. Most online lenders don’t even do credit checks.
There is a wealth of information about payday loans on the Internet. Only use a trusted company that you have heard about from a friend or read reviews about. You can get your money in about 24 hours simply by filling out the forms on their website.
As this article has shown there are many things to consider before taking out a payday loan. Now you have a better idea of what it takes to get and manage a payday loan. Remember what you have learned to help avoid future issues.