Payday Lenders: What to Look Out For
By: Mevish Jaffer
How many times have you heard the age old adage, “money doesn’t grow on trees?” As cliché as the saying might be, it is definitely true! Because you may not always have a sufficient amount of cash on hand in times of need, there are payday lenders out there that can offer you payday loans.
A payday loan, acquired through a payday lender is the quickest way for you obtain cash. This type of loan essentially provides you with a short-term cash advance until the time of your next payday.
Why Take Out a Payday Loan?
There are many reasons as to why you may need cash on the spot that you don’t necessarily have access to right away. Unforeseen extenuating circumstances that require financial assistance happen to people everyday and unfortunately, there isn’t anything that can be done to prevent them from occurring. Any of the following unexpected expenses can call for the aid of a payday loan:
- Automotive repairs
- Sudden trips in the case of family emergencies
- Bounced check
On the other end of these extreme circumstances, you may be one of the many people, who use payday csh advance loans to cover day-to-day costs such as monthly apartment rental, grocery bills, utilities etc.
Pros and Cons of Payday Loans
Payday loans continue to gain popularity among the masses, mainly due to the convenience involved in the qualification process. While other financial alternatives may impose strict eligibility requirements, a vast amount of paperwork, and lengthy approval processes, payday loans offer fast approvals and a minimal amount of paperwork in comparison. Additionally, online payday loans can also be acquired. As a result, you could be situated anywhere around the world and still apply for a payday loan, gaining instant access to the cash you need. On the other side of the spectrum, you should keep in mind that payday loans do involve higher interest rates so it’s best not to depend on them on a long-term basis.
Payday Lenders generally run small stores or franchises and many of them can be found online as well. There are a couple of things to look out for no matter which payday lender you are considering. First and foremost, compare rates! Payday lenders offer varying interest rates, which must be thoroughly evaluated. Remember that fees also come into play in addition to associated interest costs involved with the loan, so inquire about payday lender’s fees. In some cases, payday loan lenders may charge a flat financing charge or could also include further processing fees. For this reason, all related fees should be acknowledged beforehand. In most cases, payday lenders expect to receive repayment from you on your next payday, however keep unexpected financial emergencies in mind and compare the terms different payday lenders may be offering. In this day and age no matter what you’re shopping for, whether it’s a computer or a payday loan, you need to make sure you will have access to a reliable form of customer service. Look for a payday lender that will provide you with a customer service representative who will be there to assist you through email, phone or fax. You never know; you might just have some further questions regarding your loan and repayment plan.
The truth about payday loans and lenders is that if you do your research and shop around, you should be able to get a great deal and meet your immediate financial needs.