You don’t need to fear payday loans. Many are afraid of these loans simply because they don’t understand how they work. If you have any interest in payday loans, do not worry, but read the following tips and decide if a payday loan may be a good choice for you.
Before taking out that payday loan, make sure you have no other choices available to you. Payday loans can cost you a lot in fees, so any other alternative could be a better solution for your overall financial situation. Look to your friends, family and even your bank and credit union to see if there are any other potential choices you can make.
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.
Write down your payment due dates. After you get the payday loan, you will have to pay it back, or at least make a payment. Even if you forget when a payment date is, the company will attempt to withdrawal the amount from your bank account. Writing down the dates will help you remember, so that you have no problems with your bank.
Did you know there are people available to help you with past due payday loans? Through their free service of negotiation with your lender to achieve lower interest rates, or perhaps a consolidation of the debt, these companies can help remove you from the loan cycle.
If you are in the military, you have some added protections not offered to regular borrowers. Federal law mandates that, the interest rate for payday loans cannot exceed 36% annually. This is still pretty steep, but it does cap the fees. You should check for other assistance first, though, if you are in the military. There are a number of military aid societies willing to offer assistance to military personnel.
Ensure you have the right information pertaining to payday loans. They’ll need a pay stub which is an honest representation of your income. And double check that you’ve given them the correct number for them to contact you. Falsifying information or withholding information that is expected can wind up causing you to wait longer for loan approval.
Comparison shop for lenders. Interest rates and fees are as varied as the lenders themselves. You might see one that seems to be a good deal but there may be another lender with a better set of terms! Research can help you get the best deal possible.
Do not allow a lender to talk you into using a new loan to pay off the balance of your previous debt. You will get stuck paying the fees on not just the first loan, but the second as well. They can quickly talk you into doing this time and time again until you pay them more than five times what you had initially borrowed in just fees.
Pay close attention to fees. The interest rates that payday lenders can charge is usually capped at the state level, although there may be local community regulations as well. Because of this, many payday lenders make their real money by levying fees both in size and quantity of fees overall.
Demand an open communication channel with your lender. If your payday loan lender makes it seem nearly impossible to discuss your loan with a human being, then you may be in a bad business deal. Respectable companies don’t operate in this way. They have an open line of communication where you can ask questions, and receive feedback.
Never take out a payday loan on behalf of someone else, regardless of how close the relationship is that you have with this person. If someone is not able to qualify for a payday loan on their own, you should not trust them enough to put your credit on the line.
Try to find a payday loan company that offers loans to individuals with poor credit. These loans are based on your job situation, and ability to pay back the loan instead of relying on your credit. Securing this type of cash advance can also help you to re-build good credit. If you comply with the terms of the agreement, and pay it back on time.
If you are having issues paying back your payday loan, let the lender know as soon as possible. These lenders are used to this situation. They can work with you to develop an ongoing payment option. If, instead, you ignore the lender, you will find yourself in collections before you know it.
Take some time to make sure a payday loan is right for your situation before signing the contract. There are cases where a payday loan can be useful, however many times people rush for a loan the minute an unforeseen event occurs. Try and make a sound financial decision without the emotional baggage that comes with an emergency.
While legitimate payday loan companies exist, some of them are scams. These scammers are generally known by tactics as a)using names very similar to real companies, b) giving a loan by phone and c)telling you your credit score doesn’t matter. At best they will sell your personal information, at worst they will use it for identity fraud.
This article has given you the information you need to determine whether or not a payday loan is for you. Make sure that you take into account all that you have learned and do not take any of this information lightly. Also, make sure to conduct thorough research before accepting a loan offer.
