In today’s world, many people are living between paycheck to paycheck. Because of their financial crisis, they are looking towards the one-hour payday loans as a temporary solution. If you are also thinking of borrowing money from a payday loan company, you must know these ten important things about payday loans.

payday loans

1. Browse on the internet and look for a website that will give you all the necessary information about the loan that you need up front. The fees and other charges should be clearly explained and it should be easy to understand for everyone. Don’t deal with a website that is hiding the fees.
2. Deal with a company that has a good market reputation. There are many scammers on the internet who are making a lot of money in illegal terms out of the pocket of innocent consumers. Prefer working with a company that has been in the business for many years and has a physical address.
3. Before shopping with any company, read the reviews posted by people about their experiences with different companies and those who have been rated the most. There are many review sites that will evaluate different types of products of various companies.
4. A good loan company will have a robust customer support. They will have a 1-800 number and are available 24/7.
5. Go through the terms and conditions carefully and read between the lines. If a website says that their fees are $15 per $100, it doesn’t sound like much. You need to do your calculations and understand that if you borrow $1000, they will charge you $150 in fees. If you take the loan for four weeks, they will charge you $150 for four weeks and you end up paying almost $600 for a $1000 loan. And it can be quite expensive for anyone who is borrowing money because of his financial bind.
6. If a company says that they won’t charge you a single penny in application fees, it doesn’t mean that what you will borrow, you will pay back that amount only. What it actually means is that they won’t charge you anything in processing your application. They will make their words in a way to lull you into complacency, so don’t fall for it.
7. Before applying for the loan, you must figure out how much you actually need and stick to your guns. Many websites will have a small application form to be filled and then having a company representative call you to confirm the details. The salesperson will try to convince you to borrow more money than what you actually needed. Remember, the salesperson gets an incentive from the loan company for the maximum loan amount issued to the borrower. So he will try to answer all your questions up to your satisfaction.
8. Know your legal rights before borrowing money. There are many federal and state laws and every loan company has to abide by them. Educate yourself so that you don’t end up doing business with a company that is not following the laws in your state and they are out there to steal your money.
9. When you take a payday loan, you are actually taking a chance with a company you don’t know. So you must check out that company with the Better Business Bureau, federal trade commission and your local attorney general’s office and know more about their business.
10. After filling out the application form online, prefer going to the office of the loan company and complete rest of the formalities.

This entry was posted on Friday, November 2nd, 2012 at 3:03 pm and is filed under Payday Loan. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.