With fuel, food, rent and insurance all on the incline, financial woes can pile up in a hurry. When unexpected things happen, many people are looking for other options. Some individuals turn to payday loans. It is most important to fully understand how a payday loan works and how it will affect you. Keep reading for some ways to find out if this is the right thing for you.
If you want to get a payday loan, you need to think about how you will pay it back. Effective APRs on these kinds of loans are hundreds of percent, so they need to be repaid quickly, lest you pay thousands of dollars in interest and fees.
Double-check the requirements for payday loans set out by the lender before you pin all your hopes on securing one. Many companies don’t just require you having a job, but you need to have been at it for about three to six months. This is to ensure you will pay the loan off.
Keep your personal safety in mind if you have to physically visit a payday lender. These places of business handle large sums of cash and are usually in economically impoverished areas of town. Try and only visit during daylight hours and park in highly visible spaces. Go in when other customers are also around.
Make sure that you know how, and when you will pay off your loan before you even get it. Have the loan payment worked into your budget for your next pay periods. Then you can guarantee you pay the money back. If you cannot repay it, you will get stuck paying a loan extension fee, on top of additional interest.
Know what the payday loan fees are prior to getting a loan. You might have to pay up to 40 percent of what you borrowed. You may have to pay a 300-500 percent APR. Therefore, it is optimal to pay back your loan immediately so the fees don’t rise.
A great tip for anyone looking to take out a payday loan is to avoid giving your information to lender matching sites. Some payday loan sites match you with lenders by sharing your information. This can be quite risky and also lead to a lot of spam emails and unwanted calls.
Check out potential payday loan lenders at the BBB, or Better Business Bureau. There are many that are good and ethical, but many aren’t trustworthy. Check out any complaints that have been made about a particular company, as well as what the company’s response was.
If you have a payday loan taken out, find something in the experience to complain about and then call in and start a rant. Customer service operators are always allowed an automatic discount, fee waiver or perk to hand out, such as a free or discounted extension. Do it once to get a better deal, but don’t do it twice or else risk burning bridges.
Hopefully, the article you’ve just read has given you a more thorough understanding of payday loans. Getting yourself back into good financial shape can be very difficult. Educating yourself about your choices puts you in a better position. Take what you’ve just learned to heart so that you can make good decisions going forward.