If you want to get a payday loan, read the fine print first. Never simply trust a company. You need to be able to pay the loan back on time, and the money should be used only for its intended purpose.
If you find yourself in the midst of a financial emergency and are thinking about applying for a payday loan, be aware that the effective APR of these loans is incredibly high. The interest rate for some lenders can go as high as 200%. Many lenders will use loopholes to make their interest rates even higher.
Before applying for a payday loan, investigate the full range of other financing options that are available. Your overall financial situation will be better if you can get the money you need through a bank loan, from a relative, or even off of your credit card. No matter what you choose, chances are the costs are less than a quick loan.
Most payday loan companies require that the loan be repaid 2 weeks to a month. You will have the money back within a month, and it might even be as soon as two weeks. But, if your next paycheck will arrive less than seven days after getting the loan, you may be exempt from this rule. Then it is not due as fast.
If you are unable to pay your loan in time, try to get an extension. A good number of payday lenders offer short-term extensions such as a day or two. As with anything else in this business, you may be charged a fee if you need an extension, but it will be cheaper than late fees.
Look into the payday loan company’s policies so you are not surprised by their requirements. Sometimes, the loan company will insist that you have held a job for a certain amount of time before they will consider loaning you money. This way they can verify that you plan to pay them back.
Be sure you know the exact payoff date of your payday loan. Cash advances have very high interest rates, and providers often charge extortionate fees for late payments. Thus, it is essential to repay such loans entirely either on or prior to the formal due date.
Those with poor credit and who encounter financial emergencies can make good use of payday loans. But, such loans must never be used for routine expenses. The use of cash advance loans in irresponsible fashion can result in a nasty cycle of borrowing and more borrowing.
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