A payday loan is something no one wants to resort to but they can help you in a tight spot if you are desperate. However, it’s possible to be victimized by unscrupulous lenders and wind up worse off than you were to begin with. Fortunately, this guide has a lot of tips about payday loans that could make your experience as smooth as possible.
Understand what APR means before agreeing to a payday loan. APR, or annual percentage rate, is the amount of interest that the company charges on the loan while you are paying it back. Even though payday loans are quick and convenient, compare their APRs with the APR charged by a bank or your credit card company. Most likely, the payday loan’s APR will be much higher. Ask what the payday loan’s interest rate is first, before you make a decision to borrow any money.
When considering taking out a payday loan, be sure you understand the repayment method. Sometimes you may have to send the lender a post dated check that they will cash on the due date. Other times, you will just have to provide them with your checking account information, and they will automatically deduct your payment from your account.
Realize that you are giving the payday loan access to your personal banking information. That is great when you see the loan deposit! However, they will also be making withdrawals from your account. Make sure you feel comfortable with a company having that kind of access to your bank account. Know to expect that they will use that access.
If you lack the money to repay the payday loan when it is due, request that the firm provide an extension. You might find your payday loan company is willing to offer you a one or two day extension. Although, you will be charged an additional fee.
Choose your references wisely. Some payday loan companies require you to name two, or three references. These are the people that they will call, if there is a problem and you cannot be reached. Make sure your references can be reached. Moreover, make sure that you alert your references, that you are using them. This will help them to expect any calls.
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.
Do not use the services of a payday loan company unless you have exhausted all of your other options. When you do take out the loan, make sure you will have money available to pay back the loan when it is due, otherwise you may end up paying extremely high interest and fees.
With any luck, the information this article provides will have given you some helpful information on payday loans. While no one wants to get a payday loan, they can help you out in a time of need. If you find yourself needing a payday loan, ensure you go back over this article.