There is no reason to be afraid of using payday loans from time to time. Many people are intimidated by payday loans due to not understanding them. If you want to learn more about payday loans, keep reading.
Remember that the interest rates on payday loans are very high, before you even start getting one. The annual percentage rates can reach 200 percent in some cases. Many lenders will use loopholes to make their interest rates even higher.
Before you commit to a payday loan, it is smart to research the state’s Better Business Bureau to investigate the business. This will ensure that any company you decide to do business with is reputable and will hold end up their end of the contract.
Evaluate alternative lending options before deciding to apply for a payday loan. It is better to borrow from a member of your family or even to get a bank loan instead. All of these options expose your to far fewer fees and less financial risk than a payday loan does.
If the due date for your loan is approaching, call the company and request an extension. Most payday loan organizations will offer you a one or two day extension. Just keep in mind that you will end up owing more when you obtain an extension.
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.
Look for different loan programs that might work better for your personal situation. Because payday loans are becoming more popular, loan companies are stating to offer a little more flexibility in their loan programs. Some companies offer 30-day repayments rather than one to two weeks, and you may qualify for a staggered repayment plan that can make the loan easier to pay back.
Always give the payday loan provider current and accurate information. Be certain that your evidence of income is accurate and up to date, like your most recent paycheck stub. Also, be sure to give them the correct contact number. By giving out false information, or not including required information, you may have a longer wait before getting your loan.
Your credit record is important when it comes to payday loans. You may still be able to get a loan, but it will probably cost you dearly with a sky-high interest rate. If you have good credit, payday lenders will reward you with better interest rates and special repayment programs.
With any luck, this advice should have given you a better idea of whether payday loans are right for you. Educate yourself and carefully compare all of your options and offers. Gather more information before you sign the contract on any payday loan.