Many people are curious about payday loans. Even though payday loans have high interest rates attached to them, they are useful in times where a quick payment is needed. This tips below will help you make good decisions about payday loans.
No matter what, only get one payday loan at a time. Never apply for payday loans from multiple loan companies. This leads to a death spiral in which the interest mounts so quickly that your wages will never be enough to repay the loans.
Most payday loans are supposed to be paid back in two weeks. You may not be able to pay back your loan when it is due because of an emergency, but you shouldn’t worry about being late. It is common for lenders to offer the ability to roll loans over so that deadlines are extended, but fees continue to accumulate.
Always consider different loan sources prior to using a payday loan. Borrowing money from a friend or family member is better than using a payday loan. By borrowing money from a friend, you can avoid the fees associated with payday loans.
Always have enough money available in your bank account for loan repayment. The lending institution will send your account to collections if you miss any payments. If you overdraft your account, your bank will charge you fees on top of the extra money you will now owe the payday lender. By ensuring that the money is in your account, you will be able to keep everything under control.
Make sure you provide a payday loan company with the right information. Provide them with proper proof that shows your income like a pay stub. You also need to provide them with a good phone number to reach you at. If you refuse to give them information, or give them incorrect info, it can cause your loan to be delayed or denied.
If you are a regular customer at payday loan establishments, consider enrolling in CCCS to consolidate existing debts and learn better money management techniques. It is all too easy to get caught in a cycle of using one payday loan to pay off another, which can end up costing you a lot.
You are going to need to have your employment record in shape if you intend to secure a payday loan. In most cases, you need a three month history of steady work and a stable income in order to be eligible to receive a loan. You’ll need to have some sort of employment verification, such as a pay-stub.
Know what fees the payday lenders charge before doing business with them. For example, a lender could charge you $30 for the $200 loan. Over just a few weeks, this means you are paying an annual interest rate of nearly 400 percent. That rate goes even higher if you don’t pay during your next pay cycle.
Look at the calculations and know what the cost of your loan will be. Everyone knows that payday loan providers charge borrowers very high interest rates. But, payday loan companies also will expect their customers to pay other fees as well. In most cases, you can find out about these hidden fees by reading the small print.
Don’t ever borrow more money than you can pay back. Many lenders will offer more money than you can afford. When you do not pay the loan back on time, you will continue accruing interest and fees.
Do not borrow more money than you can pay for by the loan due date. Often times you will be offered more money than you actually need and while it may be tempting to accept, you are just paying more in interest in the long run.
Don’t consolidate multiple payday loans into one large loan. When you’re having trouble paying back small loans, it will be twice as hard to pay back an even bigger loan. Find loans with low interest rates, to take some of the pressure off.
If you’re self-employed, consider taking out a personal loan rather than a payday loan. The reason being that payday loans are sometimes declined if you are self-employed. People that get payday loans are required to have a steady income, and this doesn’t happen for a lot of people that freelance because their pay varies quite a bit. This also makes it hard to provide some kind of proof of income.
Always research loan companies before you apply for a payday loan. Even though you feel that it is an emergency and you don’t have the time to research the options, think twice! The beauty of the payday loan is how quick it is to get. In some situations, you can even have access to money that same day. Use the Internet to find a company with low interest rates and good customer reviews. Also, try to figure out if there are any other options available to you.
As you seek payday lenders, do not take your credit into consideration. Payday lenders only look at income verification and that you have enough coming in to pay off that loan during your next pay cycle. Many don’t even use credit checks. They just use verification and will then offer up to $700 based off of that information.
Some payday loans eliminate most of the paperwork, which ends up costing you more. You will have to pay more for the luxury of getting a faster loan. This will make interest rates as well as fees cost a lot more than other loan companies.
You may want to consider a payday loan if an emergency has come up and you can’t get money anywhere else. While it is never a good idea to rely on these loans consistently, on rare occasions they can be the best option.