Many know to be cautious about lenders who offer fast cash while charging exorbitant interest. This includes cash advance loans, so if you’re seriously consider getting one, you should educate yourself first. This article will prevent you from getting ripped off as you enter the jungle of payday lending.
Keep in mind that when you take out a payday loan, you are going to have to pay that back quickly. Be aware that the money needs to be paid back as quickly as two weeks. The only way around this is if your payday is coming up within seven days of securing the loan. Then your following paycheck will them become your due date.
If you need an emergency payday loan, and can’t find one near you, go to your nearest state line. It may be possible to go to another state that allows cash advances and apply for a bridge loan in that state. Usually this only requires a single trip as they will be paid back electronically.
Before entering a payday loan agreement, be certain you understand all rates, fees and policies completely and have your agreement in writing. Be very, very wary of companies that fail to disclose such information.
Do not worry if the loan company requests your bank information. Some people decide against getting the loan because this is information they do not want to give out. The reason payday lenders collect this information is so that they can get their money once you get your next paycheck.
Don’t avoid paying your debt to payday loan officers. Payday loan providers often employ scary debt collectors who will harass you and your family if you don’t pay back your loan in time. Therefore, contact the provider directly to negotiate an extension when you fall on hard times.
Think of other ways to axquire loans before choosing to get a payday loan. Even credit card cash advances generally only cost about $15 + 20% APR for $500, compared to $75 up front for a payday loan. Talk to your family and friends and ask them if you could get help from them as well.
If you have many loans on your plate, don’t ever put them all together. A bigger, consolidated loan will not make it any easier to pay off. Trying to lower your interest rates on your smaller loans and paying them off is a much smarter idea.
Don’t borrow extra money, even if it is offered. Lenders want you to take out a big loan so they get more interest. Borrow only what you need and don’t get more than that.
Do not take a payday loan lightly. You may develop issues with both your credit and bank if it’s not done properly. Cash advances are serious and require quick action regarding repayment. Remember that you will have to pay it back with interest.
Make sure you understand cash advances are just a solution for the short run. If you cannot afford to pay your bills and have no money put aside for emergencies, you should look into debt counseling or do some efforts to live on a budget and manage your finances more responsibly.
Make sure you understand the total costs, interest and fees involved in the loan. The press justifiably hammers on the costs associated with this type of loan, but in some cases, there are no other options. People usually take out loans in the $100-$1,500 dollar range. You usually pay about $15 to $30 per $100 of borrowed money, assuming you repay the loan within 14 days. Think ahead whether or not you will be able to repay this amount out of your next paycheck, and if the answer is no, then decline the loan altogether.
Though there are clearly times when cash advances are wise, you must gain a thorough education about prospective loans in advance. The above article gave you crucial advice for obtaining a payday loan.