Most of us commonly find ourselves in a situation when it’s getting pretty tough to live within our means and cover the expenses between paydays. It may be because of any reason like an emergency car repair, an injury not covered by health insurance or a celebration event in the family. It happens to more people than you think and you are not living in an isolated world. Many people run out of money before the month ends and sometimes payday loans are the right solution in such cases.

If you are applying for a payday loan, make sure that you follow these 10 tips so that you don’t end up making a wrong financial decision or get scammed.

1. You should be at least 18 years old and must have a full time job. This will ensure that you have means to back the loan in your next payday.
2. You should have a steady income whether it is on weekly, bi-weekly or monthly basis.
3. You must have a checking or savings account. This will ensure that you receive and send money electronically.
4. When you are applying for the payday loan, you will need this information to prove to the lender that you are a trustworthy risk to their finance and have the ability to pay back your loan.
5. Be sure to check the loan company being legit. Don’t borrow money from a company that is not licensed in your state. There are large number of companies who do an illegal business and charge excessive interest rates and fees. Check the company with the BBB and the state attorney general’s office with no outstanding or unresolved complaints.
6. Clearly understand the terms of the loan for which you are filling up the application form and paying the fee.
7. Almost all payday loan companies have their website. You should go to their website and find out the fees involved and the interest rates being charged. They should be regulated under the laws of your state.
8. Make sure that you are aware of the penalties involved if you do not pay back the loan on time.
9. Read and understand the terms mentioned in the loan contract copy
10. If you don’t see the required information on the lenders website, it’s not a good idea to get a loan from that company. They are not disclosing the information which sounds to be fishy.

There is a mix of both legit and scam payday loan companies on the internet. You need to protect yourself by dealing with the right company. As you consider the above tips, make sure that you are aware of repaying back the loan and still cover next week’s bills.

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This entry was posted on Saturday, March 15th, 2008 at 6:52 pm and is filed under Loan, Payday Loan. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.