Payday cash advances exist to help people out with things they did not see coming. These types of loans can be helpful if an unexpected plumbing problem occurs or in the case of a short-term medical situation. That said, you need to read this article to ensure you don’t get ripped off.
There are a number of payday lending companies. If you think you need this service, research your desired company prior to getting the loan. Find out how their past customers feel. You can do an online search of the company and read customer reviews.
Be aware of the fees that you will incur. When you are desperate for cash, it can be easy to dismiss the fees to worry about later, but they can pile up quickly. Request written documentation of the fees that will be assessed. If you take these steps prior to taking out the loan, you’ll minimize the amount that you need to repay.
The standard time to pay back a payday loan is two weeks. You may find yourself stressing when the due date deadline arrives because something has come up and you’re unable to fully repay the money back on time. A lot of lenders will allow you “roll over” your loan and extend the repayment period; some even do it automatically. Just be aware that the costs associated with this process add up very, very quickly.
Make sure you know the consequences of paying late. Naturally, if you accept a payday loan, you must be able and willing to pay on time. Nonetheless, the unexpected does have a way of happening. Read every detail of the contract so that you are fully aware of late fees and penalties. For cash advance loans, the penalties can be quite high.
If you’re nearing the date when your payday loan needs to be repaid, but are short on cash, ask the company to give you an extension. There are payday lenders who will offer extensions up to 48 hours. Be aware that taking them up on the offer may mean you end up paying more.
There are some sneaky companies out there that will automatically extend your loan for two more weeks and charge you a hefty fee. This will cost you because you will be paying fees but not much on the actual loan. The amount that consumers end up paying is five times what they originally borrowed, and that’s before they even pay off the loan.
Avoid the feeling of financial relief once you have the money from your payday loan. Make sure that you have your paperwork where you can refer to it so that you make sure you pay your loan back on time. If you fail to pay the loan on time, you’re going to accrue enormous fees and also collections will proceed.
When securing your payday loan, take out the least amount of money possible. Times are tough and there are a lot of reasons why someone would need a little more money. Keep in mind, though, that interest rates are really high on payday advances. Keep your costs down by borrowing less.
Check with the BBB to be certain the payday lender you are considering has a good rating. Prior to signing a loan agreement, get in touch with the local Better Business Bureau in order to determine whether the company has a good reputation. After finding complaints, you are probably better off finding a different company to do business with.
No one plans on getting a payday loan. It is often a result of an emergency, which could be anything from a sick child to a broken furnace in winter. Sometimes, things happen when you have no money. Payday lending is available to bridge such gaps. Yet, even though they seem convenient, you need to look out for yourself. Remember everything you have learned here and you can handle these emergencies easily.
