A payday loan is a good tool to handle unexpected financial blows. Sometimes unexpected things can happen which will leave you desperate for money. Before you make a choice regarding what you need in a payday loan, read the following suggestions to help you make the best choice.
When considering a payday loan, although it can be tempting be sure not to borrow more than you can afford to pay back. For example, if they allow you to borrow $1000 and place your car as collateral, but you only need $200, borrowing too much can lead to the loss of your car if you are unable to repay the entire loan.
Remember when taking out your loan, that your upcoming paycheck is pretty much spent. Since the next paycheck will be used to pay back the loan, the funds have to last for the next two pay periods. If you don’t keep this in mind, you may suffer even greater financial distress later.
Do some research about payday loan companies. Don’t just go with a company that has the best advertising. Take time to do some online research, looking for customer reviews and testimonials before you give out personal information. If you use a company with a great reputation, the process will go smoothly.
If your loan’s repayment date arrives and you don’t have sufficient funds to pay your lender back, call the lender and ask them to move your payment date back. 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. Make sure that you understand that such extensions do come at a price.
It is best to deal with a payday lender who offers direct deposit. You’ll get your money within a business day. This is the most efficent way to go about it so you are not traipsing around with a large amount of cash on you.
If you have to take out a payday loan, make sure you read any and all fine print associated with the loan. If there are penalties associated with paying off early, it is up to you to know them up front. If there is anything that you do not understand, do not sign.
Consider all the payday loan options before you choose a payday loan. While most lenders require repayment in 14 days, there are some lenders who now offer a 30 day term that may fit your needs better. Different payday loan lenders may also offer different repayment options, so pick one that meets your needs.
When dealing with payday lenders, always ask about a fee discount. Industry insiders indicate that these discount fees exist, but only to those that ask about it get them. Even a marginal discount can save you money that you really do not have right now anyway. Even if they say no, they might point out other deals and options to haggle for your business.
Payday loans are an expensive short-term solution to an unexpected event, such as a flat tire. Sometimes you have to get your rent check in before your paycheck arrives. Payday loans can help you out of these situations, but you need to be careful and be smart. You will be able to tackle your financial difficulties with ease armed with this information.