If you are seeking cash loans of up to $1000 that can be provided in less than five minutes; payday loan services are what you need! These short-term loans that are due on your next paycheck can be readily found online or at brick-and-mortar locations.
Usually, shops that have Western Union, or Money-gram signage or have window stickers with the word “online cash advance” are generally payday loan providers. You have likely seen these shops around your neighborhood depending on where you live. In most states, payday lending is totally legal and the industry has plenty of competition.
Choosing the right payday loan provider can hence be difficult, especially when faced with so many overwhelming options. These services are now even offered by many major financial institutions. Gone are the ways when you had to visit a pawnshop for some quick cash!
Choosing the right lender can not mean saving money but also potentially saving yourself from regrets relating to your loan provider. The lending and borrowing industry is as old as civilization itself and competition today is fierce.
With so many competitors doing your research to find the right one for your needs is integral. But what are you looking for? As someone who is considering a payday loan for the first time, who should you go to? Or where should you begin your research? Don’t worry, we are here to help.
If you find a particular lender’s interest rates and fees attractive make sure you first check whether they are legitimate and licensed to operate where you live. Different states have different regulations and laws governing payday loans while in some states payday lending is considered illegal.
A company or lender’s licensing and credentials should be clearly displayed on their website. If it is not it is your right to ask for it. To double-check you can also contact your state’s Attorney General’s Office for confirmation that you are borrowing from a legitimate and licensed payday lender.
Payday loans can be an extremely convenient way to acquire cash quickly. Some lenders even offer one-hour loan processing times with direct deposits into your bank account. While these services offer unparalleled speed and convenience, always check to see what interest rates the lender is quoting and whether there are any added fees involved.
The quicker and more relaxed the process is, the higher the interest rate offered by the lender. In some states, lenders can offer Annual Percentage Rates (APRs) of well over 400% with added charges on top which can be a burden more than a blessing.
Always check state laws to ensure you are not overpaying for any borrowed money. Also, make sure you compare services and prices to find the best deal depending on the state you live in.
Interest rates are important, the lower the better. However, at the same time terms and conditions also need to match your financing needs. Terms and conditions include things like the payback period. Lenders may offer payback periods anywhere from 15 to 90 days with varying interest rates.
Reading the fine print and knowing exactly what your overall cost of borrowing is will be essential in determining which lender to choose.
Some lenders might offer amazing interest rate deals on payday loans that may seem extremely attractive, however, it is always essential to ensure that the low-interest rates are matched by no hidden fees or processing costs.
Such types of fees are common with payday loan lenders, hence don’t just go by interest rate alone but rather a accumulation of all fees and costs.
Some lenders might also have very harsh penalties imposed on customers who are unable to pay back the loan within the appointed time. In many cases, not only will they be charged compound interest on these loans but you could also be faced with additional late fees and even financial penalties.
The more experience or the longer a lender has been in the market the better it is. With many years of service, there is likely going to be a ton of customer reviews, testimonials, and feedback available online giving customers a fair idea of what their service is like and what they can expect when borrowing.
Customer reviews, testimonials, and feedback on sites such as the BBB, Yelp, and Google My Business can all help in providing a fair idea as to how trustworthy, credible, and accommodating a particular lender is. Always read up on recent reviews as they can tell a lot about the lender and whether they seem like a right fit for you.
Should you borrow a payday loan from a storefront or should you apply for one online? The answer to this question depends upon a few factors, such as what state you live in and how technologically adept you are.
If you are old school, storefronts might just be the way to go, however, if you are adept at online research applying for a payday loan this way might not only help save you time but also money.
Payday loan services are still widely popular in the United States, with these services used by over 2 million households. Sure, depending on where you live you may or may not be able to avail a payday loan. However, if it is legal in your state make sure you first check your state laws governing payday loans.
Knowing the maximum borrowing limits, the maximum interest that lenders can charge, and the maximum payback period that can be offered can all be extremely beneficial once you start shopping around for the best payday loan provider for your financial needs.