Many know to be cautious about lenders who offer fast cash while charging exorbitant interest. Payday loans do fall under that category, and if you are thinking of taking advantage of their services, it is important to know all about them. The following tips can give you guidance on protecting yourself whenever you need to take out a payday loan.
There are many situations where a payday loan is your only option. It is best to avoid this type of borrowing if at all possible. Payday loans are a resource you might want to consider when you’re in a financial bind.
Be prepared for the fees that accompany the loan. Needing the money right now is perfectly understandable, but just remember that you’ll eventually be responsible for the fees. Demand a list of all fees that you are held responsible for, from the lender. Before you get the loan, make sure you know what you have to pay.
The maximum amount for which you are eligible will vary. This will depend on the amount of money you make. Loan providers review your income and determine a maximum loan amount. You must understand this when considering applying with a payday lender.
Look into any guarantees offered by loan companies. A lot of these companies have bad intentions. They make their money by giving loans to poor borrowers that have a small chance of repaying on time. There is usually a catch to every promise or guarantee, so watch out for that.
Sometimes, an extension can be provided if you cannot pay back in time. There are payday lenders who will offer extensions up to 48 hours. Although, you will be charged an additional fee.
You should know the terms and conditions of the loan before borrowing money. Many of these companies not only require that you have a job, but that you have had it for at least 3 to 6 months. They want to ensure they will get their money back.
Be certain the money for repayment is in your bank account. Lenders will try to withdraw funds, even if you fail to make a payment. Banks will assess NSF fees, and you are sure to incur greater debt to the lender. Be sure that you have money in your account so things are kept under your control.
Give the correct information to the payday loan officer. You will need to provide proof of your employment and salary, usually by showing your pay stub. Make certain your phone number is correct so that they can call you. If you provide incorrect information or you omit necessary information, it will take a longer time for the loan to be processed.
You will need a steady work history or verified income sources to get most payday loans. Lenders usually require your three most current pay stubs from a stable job in order to loan you money. Most lenders will need to see documentation like paycheck stubs.
Taking out a payday loan may be unavoidable, but that doesn’t mean you shouldn’t be fully educated about the process before you sign the loan contract. Reading this article should have given you more insight, designed to help you when you are in a financial bind.