Need a source of quick cash? There are many ways that you can get cash quickly but sometimes those sources might be unavailable to you. You have to shop around and find the other options that are open to you.
Payday Loans for Quick Cash
One method of getting cash quickly which you might be considering right now is getting a payday loan. A payday loan is a short term loan that is usually given for small amounts. This kind of borrowing is very popular right now, with millions of Americans using it. Payday loans are also available in other countries such as the UK and Canada.
Millions of consumers rely on payday loans in order to provide them with quick cash when they need it and it is very well-suited for that purpose. There are several qualities of this kind of loan that sets it apart from other financial products. First of all, a payday loan does not require the same kind of credit check that is run by a bank on a consumer who is applying for a loan with them. For most areas, there is also no need to submit documents to back up a loan application. Another reason why payday loans are very popular is because of the speed that borrowers can get their money. Payday lenders can process applications quickly because it is all done online and mostly there are no documents to be verified.
Payday Loans Checklist
It is not surprising if you are considering the use of a payday loan in order to remedy your cash shortage. It is the easiest method that you can use to get your money. But before you go ahead and use a cash advance loan, you should prepare a checklist first. This is one way to make sure that you would be making the most out of the loan. Here are some of the things that you ought to include in your checklist:
Have a Plan
Before you go out and get a payday loan, you have to stop and come up with a clear plan. There are two things that must be included in the plan and those are how you can pay back the loan together with the fees and how you will be able to survive through the month after paying. If you don’t have a plan then it would be better if you do not use a payday loan at all. Chances are that you would end up unable to pay the loan on the agreed date and you would be forced to extend the term.
Picking the Right Payday Lender
Making sure that you pick the lender that you will be borrowing the money from very carefully would reduce the chances of being victimized by scammers and unscrupulous companies. In general, brick and mortar lenders are better and safer than the ones that you can get through the internet. They have to be licensed by your state in order to operate a storefront. If you really want to get a loan through the internet avoid borrowing from lenders that have contacted you through unsolicited emails or even through over the top advertisements. When searching online for a lender, it is not a good idea to go by the sponsored results. Those companies paid the search engines to be placed there. It is also better if you were to compare the prices and the rates that are offered by the various lenders.
Annual Percentage Rate
If you want to know the ultimate cost of the payday loan being offered by a lender as compared with others, then you have to compare their APR or annual percentage rate. Cash advance lenders should be able to provide you with information regarding their APR. If a lender is unable to provide that information, then do not go for that lender.
Contact Information of a Lender
When you are dealing with a company, especially when it comes to matters of finance, you should be able to get enough contact information for that company to ensure that you will be able to reach them when you have to. You should be able to get the name of the company, their address, their phone number and their email address.
Another way to ensure that you will protect yourself against scammers is to ensure that the lender is legitimate. The best way to check the legitimacy of a lender is by making sure that it is licensed by your state. It is always better to go for lenders that are within your own state.
Check the Website Registration Information
Online payday loans are more open to scammers. You can never be absolutely sure that you are dealing with a legitimate online lender if you are doing so for the first time. One method that you can try is to check the registrant information of the website. It should match the name of the payday loan company. If the name on the registration that appears is that of an individual then that should be a warning sign. Legitimate lenders are normally registered by the company name. It’s not a sure sign but it is one more thing to check.
Security on the Site
Go to the application of the website and see to it that they are using SSL or secure socket layer. SSL is used in order to secure the transfer of data over the internet. Checking if a site uses SSL is quite easy. All you have to do is to check at the URL of the application page. If it starts with https:// then that means it is encrypted, but if its starts with http:// then that means it is not using SSL.
The use of SSL does not mean that a site will be fully secure and that your information will be totally safe, but if an online payday lender is not using it then that is a bad sign.
Call the Lender
Going through the website of the lender does not end your checking if it is okay. Once you are done checking all the information that we have enumerated, your next step would be to call the toll-free number that they have on their site. One reason why you should call the number that they have given is so you can assess the level of customer service that they can provide. Another reason is so that you can ask questions and clarify any questions that you might have.
Check the BBB Rating
The Better Business Bureau keeps track of all businesses and service providers and that includes payday lenders. They give out ratings on the kind of service that is provided by the companies. That rating is one way to make sure that you are really dealing with a company that can provide what you need. You can check the BBB rating of the payday lender that you want to try out.
Your State Legislation
Some states have enacted laws restricting the practice of payday lending, while others have allowed it to be largely free. You should find out what your state law says about payday lending before you go out and apply for one. The state laws in your area might prevent you from using payday loans in the way that you want to.
Using it as a Last Option
Using this checklist for payday loans do not remove the risks involved in this method of borrowing. The best thing that it can do is to reduce those risks. Keep in mind that the cost of payday lending is very high. Payday loans have the highest APR or average percentage rate of any comparable loan. It is so expensive that even if you are aware of the costs involved, you would still feel the pinch once you have to start paying it back.
That’s why you should only consider using cash advance loans if all other options for getting cash quickly end in failure. There are many options that you should try first. You can try borrowing personally from people that you know, or maybe even get a cash advance from your employer. Anything would be better than using a payday loan. Borrowing from a payday lender increases the chance that you could end up in a debt trap.
Reasons Why You Should Use a Payday Loan
You have to evaluate the reason why you are planning on getting a payday loan. Is it a legitimate financial emergency that must be resolved immediately? According to researchers, the majority of payday loan users actually used the loan to pay for recurring expenses and non-emergency costs. That means they used payday loans for things that they should be able to afford with their usual income. If you are planning on using a payday loan for the same sort of expense, then you should think about your move, because you are definitely on the wrong path financially. There is a high chance that you are going to end up in trouble.