Are you in desperate need of some money until your next paycheck? If you answered yes, then a payday loan may be for you. However, before committing to a payday loan, it is important that you are aware of what one is all about. This article is going to give you the information you need to know before signing on for a payday loan.
Remember that the interest rates on payday loans are very high, before you even start getting one. Interest can often times be over 200%. The lenders that do this usually use every loophole they can to get away with it.
Lots of companies provide payday loans. Once you have decide to take out a payday loan, you should comparison shop to find a company with good interest rates and reasonable fees. In particular, look through customer reviews. You can find a company’s online reviews by doing a web search.
Payday loan companies will work around the laws to charge you the highest amount. They will charge fees that basically amount to interest on the loan. These fees may equal as much as ten times the usual interest rate of standard loans.
Ask questions about fees. You should always be crystal clear on everything that the lender charges you, so make sure you inquire about all the fees before agreeing to the loan. Some people find themselves owing more than they intended after they have already signed for the loan. Don’t let this happen to you and read over every piece of information they give you. You also need to question everything you’re not able to understand.
If you must get a payday loan, open a new checking account at a bank you don’t normally use. Ask the bank for temporary checks, and use this account to get your payday loan. When your loan comes due, deposit the amount, you need to pay off the loan into your new bank account. This protects your regular income in case you can’t pay the loan back on time.
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 have applied for a payday loan and have not heard back from them yet with an approval, do not wait for an answer. A delay in approval in the Internet age usually indicates that they will not. This means you need to be on the hunt for another solution to your temporary financial emergency.
As It was mentioned at the beginning of this article, a payday loan may be what you need if you are currently short on funds. However, make sure that you are knowledgeable about payday loans are really about. This article is meant to guide you in making wise payday loan choices.