Payday Advance Loans

What To Check Out When You Apply For A Payday Loan

By Prakash Menon

Are you thinking of going in for a payday loan to meet an unexpected expense? If yes, look into these seven things before you finalize one. This checklist can help you make smarter choices. You might even end up saving some serious cash!

First thing to consider -- do you really need that cash advance? Sure, you need cash right away, but have you looked at other options? The fact is, a payday loan is an extremely expensive source of funds, with Annual Percentage Rates (APRs) ranging from 300% to 1000%. So before you take one, see if you can arrange money by taking an advance from your employer or from your credit union.

You could also consider borrowing money from friends or family. Depending on your situation, credit card funding might be an option too, because it's usually cheaper than a payday loan. Be careful with this alternative, though.

Ask yourself how much you can really repay when the next payday rolls around. Work out an exact number you can commit to. Take a cash advance only for the amount you can repay, including all charges that apply. Obtain funds from other sources for any additional requirements you may have.

Here's why. If you choose to roll over all or part of the payday loan, you end up paying much more -- additional charges, late fees, etc. Your APRs start climbing rapidly and you may even find yourself trapped in a vicious cycle of payday loan debt. Stay clear of this trap.

Apply only for one payday loan at a time. Your application gets reported to a consumer tracking database used by payday lenders and banks. If you apply for multiple loans, the lenders may see the multiple applications and you might end up being rejected by all of them.

Go through the lender's approval criteria very carefully. Apply only to one where you can qualify. If you apply to a company that has stringent criteria and get rejected, that can actually hurt your chances of getting approved by another company with more relaxed criteria.

If you're applying online, ask yourself if the lender's website seems professional and well-organized. Do they have clear information and guidelines on the site? A comprehensive FAQ?

If you need clarifications on anything, call up and ask. In fact, it's a good idea to ask a few questions to each loan provider you're considering. That way you get a feel for their responsiveness and get additional information to base your decision on.

Most important -- do they have an SSL certificate on the application page? This indicates data is being transmitted securely. Secure pages have web addresses that begin with "https:" instead of "http:" and in addition, you'll see a lock symbol displayed in your browser. If a lender is using a non-secure page to collect information about you, find another lender!

See this page for 10 things to check out before you finalize a payday loan: http://www.payday-cashadvances.net

Acting on the above points will help you make better choices about payday loans. The best solution is, of course, to get your personal finances into excellent shape so that you never need to borrow in an emergency.

About the Author: Prakash Menon is a financial expert and writer specializing in managing personal debt and providing wealth building solutions. He has written on paycheck advances, personal debt management and other topics. See http://www.payday-cashadvances.net/paydayloan.html for alternatives to payday loans.

Source: www.isnare.com

Next Payday Advance Loans advice - When Is The Best Time To Get A Quick Cash Loan

Previous Payday Advance Loans advice - What Is A Payday Loan

NYS Consumer Protection Board issues "fiscal crisis watch list" for consumers (press release) (WIVB Buffalo)
Even with today's Congressional approval of a $700 billion bailout package, the current fiscal condition has many consumers worrying about their fiscal health. Therefore, consumers may be left vulnerable to opportunistic individuals who try to capitalize on the economic crisis with "get rich quick," lending and other scams.

Ask the Experts: California Banking Association chief gives his views (The Sacramento Bee)
As head of the California Bankers Association, President and CEO Rodney Brown and his peers in statewide banking groups have been calming fears and pushing for relief, hoping to see some of the federal financial bailout extended to the country's small and regional banks. Rodney Brown

Payday Lending Business Picks Up Across State Line (KTAL Shreveport)
People are driving to Texarkana, Texas to get fast cash. A crack down on payday lenders in Arkansas caused nearly all stores to close. In March, the state ordered lenders to lower outrageous interest rates and forgive debts. Stores have until October 15th to meet these requirements or close.

Payday loan sales come under fire (BBC News)
Online payday loan companies are using increasingly aggressive marketing tools, according to debt advisors.

Payday Loan Customers Fall Deeper Into Debt (CBS 5 Bay Area)
As the government scrambles to free up credit markets, some homeowners are extremely desperate for cash. They are turning to payday loans, only to find themselves falling deeper into debt.

Number Of Payday Lenders Drops To Just 33 From 237 (KHBS - KHOG Fort Smith - Fayetteville)
The group Arkansans Against Abusive Payday Lending said Thursday there are now just 33 payday lenders making loans.

Desperate San Diegans Turning To Payday Loans (Channel 8 San Diego)
San Diegans hit hard by the economic turmoil are desperate to find ways to keep their heads above water financially. The need for fast cash has led many borrowers to take advantage of payday loans, but predatory lending could leave you worse off in the end.

LaNationalBank.com home page

Payday Advance Loans - What To Check Out When You Apply For A Payday Loan - Information