Payday loans can be a real lifesaver. If you are considering applying for this type of loan to see you through a financial pinch, there may be a few things you need to consider. Keep reading for some helpful advice and insight into the possibilities offered by payday loans.
Always ask about any hidden fees. You’d be surprised at what you can be charged for so make sure to ask. It is not uncommon for borrowers to end up owing much more than they planned, long after the documents are signed. By reading and asking questions you can avoid a very simple problem to solve.
If you take out a payday loan, make sure that you can afford to pay it back within one to two weeks. Payday loans should be used only in emergencies, when you truly have no other alternatives. When you take out a payday loan, and cannot pay it back right away, two things happen. First, you have to pay a fee to keep re-extending your loan until you can pay it off. Second, you keep getting charged more and more interest.
If you must get a payday loan, open a new checking account at a bank you don’t normally use. Ask the bank for temporary checks, and use this account to get your payday loan. When your loan comes due, deposit the amount, you need to pay off the loan into your new bank account. This protects your regular income in case you can’t pay the loan back on time.
Payday loans charge very high interest rates. It is smarter if you can get a loan from a friend or family member, or even use a credit card! Yes, most of these options have fees associated with them, but they will be a fraction of the fees associated with a payday loan.
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.
Personal Unsecured Loans
Make sure you explore all of your possible options. There are many lenders available who may offer different terms. Your past credit history will come into play as well as how much money you need. Be responsible about finding out who will offer you better terms so that you can get the best deal.
For anyone looking to take out a payday loan, they should strongly consider looking for unsecured loans first. If you have good credit and a solid history with your bank, you may be able to get a personal loan at a much lower interest rate, with a great deal more time to pay it back.
Hopefully, you have found the information you needed to reach a decision regarding a possible payday loan. Everyone needs a little help sometime and no matter what the source; you need to be an educated consumer before making a commitment. Consider the advice you have just read and all options carefully.