When you have experienced an emergency, it may often be necessary for you to apply for a payday loan. And chances are good that you need to have that money as soon as possible. With so many different lenders, it can be hard to find the one that is best for you.
First, you will need to find out if your state, area, and employment allows for payday loans. Some areas have made it illegal to use payday loans, because of the high interest rates and limited options for repayment. Additionally, the FY 2007 Military Authorization Act made it illegal for members of the military to get either payday loans or loans from a car title. Although a few companies have found ways to get around that, it can be difficult to find those lenders.
How Do I Choose the Right Lender?
When considering a payday loan, here are a few things you should look for. Specifically, your payday loan should have the following:
The lowest possible interest rate. Although payday loans traditionally carry a higher interest rate, you may be able to get a loan with better terms if you take the time to do some research.
Although no-one ever wants to think about it, what would happen if you are not able to pay this loan off in full from your next paycheck? It is best to find a company that would be willing to renew your loan, or extend payments, so that you are not in a financially stressful situation in a couple of weeks.
How long will it take to get your money? Although most companies will do a next day deposit, or you can pick up a check from them by the next day, that is not an absolute. If you need to pay a mechanic today to get to work tomorrow, or you have to replace your water heater now, waiting more than a day or two is not an acceptable option.
How hard is it to apply? These days, it is easier than ever to get a payday loan. The anonymity of the internet, as well as the large number of companies that offer no-fax loans, means that it should never take very long to apply. If it's a lengthy, time-consuming application, with lots of paperwork to be faxed, it's a red flag. You might want to skip that company.
What type of verifications will the loan company require? If they are not satisfied with your bank statements and pay-stubs, will they ask to speak with your employer? For some individuals, the necessity of borrowing money has the potential to be embarrassing. If that sounds like you, you may wish to choose someone who respects your privacy more.
Choosing the right payday loan company should not be stressful. However, all companies are not created equal and you should always do your research before entering into a financial arrangement with anyone.
