You have probably heard of payday loans, but you aren’t sure if they are right for you. These companies offer short-term loans to people who are having a difficult time financially. Sounds great, right? It can be if you find out everything you need to know before applying for one. Here are some tips to help you with these loans.
The average due date is two weeks on most payday loans. Sometimes, problems occur in our lives, and if you discover you can’t pay back a loan in time, you don’t have to worry about defaulting. It is common for lenders to offer the ability to roll loans over so that deadlines are extended, but fees continue to accumulate.
Before applying for a payday loan have your paperwork in order this will help the loan company, they will need proof of your income, so they can judge your ability to pay the loan back. Take things like your W-2 form from work, alimony payments or proof you are receiving Social Security. Make the best case possible for yourself with proper documentation.
Shop around in order to get a good interest rate. Besides local lenders operating out of traditional offices, you can secure a payday loan on the Internet, too. These places all want to get your business based on prices. Some places will give you a discount if it is your first time borrowing. Look around for all of the options before going with a lender.
If you are unable to pay your loan in time, try to get an extension. Payday loans can often give you a 1-2 day extension on a payment if you are upfront with them and do not make a habit of it. However, using up one of these extensions may mean that you have to pay a lot more than if you were to pay on time.
Before you sign up for a payday loan, carefully consider the amount of money that you really need. You should borrow only the amount of money that will be needed in the short term, and that you will be able to pay back at the end of the term of the loan.
You don’t have to act like a typical customer going through processing. Don’t fear asking for their supervisor and haggling for a much better deal. Any company will probably give some profit up just to keep a customer satisfied so they can make a little money.
If you’re in the market for a payday loan, remember to verify that you have no other alternatives. Payday loans can leave you paying upwards of 125% of what you take out within a few weeks. Consider all other alternatives before you settle on taking out a payday loan.
Check the BBB standing of payday loan companies. There are some reputable companies out there, but there are some others that are less than reputable. By researching their standing with the Better Business Bureau, you are giving yourself confidence that you are dealing with one of the honourable ones out there.
When applying for a payday loan, the loan officer request that you provide a government issued photo identification card or driver’s license, a current utility bill showing your address and a recent paycheck stub. The address shown on your identification, utility bill, paycheck stub and personal check must all be listed to your home’s physical address.
Avoid making decisions about payday loans from a position of fear. You might be in the middle of a financial crisis. Think long, and hard before you apply for a payday loan. Remember, you need to pay it back, plus interest. Make sure you will be able to do that, so you do not make a new crisis for yourself.
If you are self-employed, you may not be able to get a payday loan. Many payday loan companies do not look at self-employment as a reliable source of income and may turn down your request. If your income source is not from wages, you might have to do some searching to find an institution that will lend to you.
You can get a payday loan by applying over the phone. It is tempting to just fill out the online application and go from there, but it is a better idea to call. You can get all of your questions answered and have the piece of mind that you fully understand all of the aspects of the loan.
Even though many payday lenders might advertise that they do not run credit checks, try and only do business with a place that does. Their first, and foremost requirement is employment, and verification of your next paycheck. However, if your credit rating is not rock bottom. You might qualify for a better than advertised interest rate on your loan.
If you need more than a thousand dollar, you should find another solution. You should be able to get a payday loan from anywhere between five hundred dollars to a thousand. Look into establishing a payment plan with your creditors if you owe more than a thousand dollar, or if you want to avoid payday loans.
Make sure that any payday loan company that you plan on getting a loan from is registered with the Better Business Bureau. This is a good idea because you will know that you are dealing with a legitimate lender and not some scammer running a fake business out of his apartment.
Getting a short-term loan can be just the thing you need to help you through a hard time. These loans can be a great help, but only if you have all the information you need. Use these tips to help you take decisions about getting a payday loan, and you can get through these tough times more easily.