Payday Loan Lender: Limit Your Use To Make Payments More Affordable

Applying for payday loans to help with budget failures can often lead to overuse. It is never good practice for a borrower to owe money to several payday loan lenders all at the same time. Between the finance charges and the balances due for each of the loans, your next few paychecks will carry a heavy burden.

Credit challenged applicants need to understand that there is a clear difference between owing money to creditors and short-term lenders. A direct lender is not in the revolving account business and unless you deal with a lender who processes installment payday loans, your payment is expected in full including fees by the time you get your next paycheck. With every other household bill and payments to every creditor how much money will you have left? Too often credit challenged folks turn to the short-term loan lenders for food and gas money or to recoup from paying another safe payday loan off. This is a tough cycle to get out of. You have to make on-time payments, so how do you ever get out from under the carpet of debt? One thing for certain is that you cannot get out of debt while still making debt. You have to take a stand against using any more credit cards or fast cash loans to make ends meet.

Minimum payments will not get rid of debt any time soon. All it will do is continue to drain your bank account while you dish out finance charges with every payment. It is important to focus on the one loan that costs the most and knock it out of your budget portfolio. It makes the most sense to get rid of high interest rate debt first. This will often point to paying payday loan lenders in storefronts or online first. You may have creditors that charge similar or possibly higher rates, but the short terms on a payday loan make finance charges happen more often. Minimum payments break the bank one small payment at a time. You can’t blame financial woes only on the debt.

Creditors will send you a bank statement. Do you open it or place it on the desk to take care of another day? Do you answer the calls from a direct lender? Chances are that they may call you to remind you of your upcoming due date. Unless you have not paid the bill, you don’t have anything to avoid. If you have missed the due date or your payment was returned insufficient funds, it is good to accept their call or read any communications they send. It is always best to make arrangements with the company directly. The last thing you want is debt in default. There will come a point that a borrower’s debt will get sold off to collections. You know those companies that call and send countless emails and letters trying to collect on your debt. Collections agencies are no fun to deal with never mind the damage default debt will do to your credit report. When you get a call from your creditor or direct payday loan lender accept it and work something out. It is much better for you in the long run.

How and Why to Choose a Payday Loan Lender

No matter how hard you try to budget your money it seems like inevitably something unexpected occurs from time to time that requires funds that you simply do not have. In these desperate times you can turn to a lender that provides payday loans to get the cash you need.

These types of loans generally are quick and easy to acquire. Basically, you are requesting a short-term loan or cash advance against your next paycheck when you apply for this type of loan.

When to Apply for a Payday Loan Cash Advance

There are many, many reasons that could require the need for cash that you simply don’t have on hand. Too many times there are unforeseen circumstances requiring cash immediately that are simply out of your control. A good time to seek the assistance of a payday cash loan is when you find yourself in one of these financial dilemmas. Here are a few common examples:

1. Automobile accident or repairs

2. Unexpected traveling such as for family emergencies or funerals

3. When your checking account has insufficient funds

4. Doctor/Emergency room visits

5. Death in the family

6. You get sick or injured and have to miss some work

Even if you have cash on hand when these types of circumstances arise chances are that it is your rent money or car payment that you had to spend. This is another good reason to seek out a payday loan. By acquiring a payday cash advance you can get those bills paid and possibly keep late payments off of your credit record.

The Bright and Not So Bright Sides of Payday Loans

These types of loans are very popular mainly because of how easy they are to qualify for and how fast the process is. There really isn’t much of a credit check involved. Other types of loans require extensive paperwork and very strict qualification processes.

Today you can also get these payday loans online which makes them even more attractive. You can be located anywhere in the world and apply for a loan online and gain almost instant access to the cash you need when you need it.

This convenience has increased their popularity greatly but even so you should not use these types of loans on a long term basis due to the higher interest rates. If you’re not careful you can find yourself in a vicious cycle where each payday you have to take out another loan to make ends meet. This should be avoided at all costs.

What to Look for in a Payday Loan Lender

You can generally find several cash advance loan businesses in most cities. These lenders operate from small storefronts or franchises and of course you can always find a payday loan lender online. All of these lenders are not created equal.

Always compare rates before applying for a loan. Every lender has their own interest rates and even though most are similar they can vary drastically. Also most lenders have fees in place that are separate from the interest rates so always make sure you understand the terms of their agreement before accepting a payday loan online or offline.

These fees may include but are not limited to processing fees and/or a flat financing charge. Make sure you are aware of all extra charges involved before entering an agreement with the lender.

Most lenders will be expecting you to repay the loan on your next payday but some may offer other repayment options that you should be aware of in the event of an emergency. Keep these options in mind when choosing a payday loan lender as well.

Some Car Loans and Direct Payday Loan Lenders Service Sub-Prime Borrowers

Have you bought a new car recently? There are numerous creditors, bankers and car dealership funding advertisements the past few months. It seems that car loans are one of the new lucrative businesses for people credit challenged people. That’s right; folks may have sub-prime credit scores but are still being offered car loans. Online direct payday loan lenders are not the only service willing to help those in need. In similar format, these car loan lenders are providing this service at much higher rates than typical car loans. Just because you receive an offer to apply for a car loan, it doesn’t mean you have to apply and it surely does not mean you should use the whole limit offered, that is if you actually get approved.

Offers do not equate approved money. They are a way to get new customers through the door. When an online payday loans direct lender advertises, they are considered predatory, but when the loan is for a car, it is all good, right? Not really, but the industry standards for lending services are not the same. Creditors can drum up new customers much in the save way a bank could. When you go to a car dealership and they have their own funding service, credit challenged folks are more than welcome.

What makes these types of lenders different that payday loans? The interest will not be as high, the payoff term is calculated in years and the loans are for much more than a direct lender will ever offer. What does that all boil down to? If you are going to take one of these offers up, be prepared to be rejected as well as prepared to pay large interest costs for the length of your loan.

Why are these lenders/creditors willing to work with sub-prime borrowers? Because car loans are secured loans, there is little fear in losing money from a loan gone bad. Once a loan does reach the default position, the car will be repossessed and sold for profit. A direct payday lender does not service collateral loans but still work with sub-prime borrowers who qualify.

Just like with any other money service, you need to be careful before you start applying to all the car loan offers. Remember that once you send in the applications there will be a hard credit inquiry on your credit report. Short-term loan lenders offer no credit check loans therefore any application will not scrape points off your credit score as the others. A loan offer is an offer to apply, not a guaranteed approval so be cautious in applying for too many of them.

If you do get approved and carry through with purchasing a new car don’t think you have to spend the whole approved amount. It is important that you only purchase a vehicle that you can easily afford. Take into account the interest rate applied to your loan. The longer you take the loan out, the more you will pay in interest. Try to keep the terms of your loan around 3 years. The longer your loan is for, the more interest you pay as well as run the risk of other problems entering your budget. The last thing you will want is to make on-time payments for consecutive years and then run into payment problems which forfeits your car back to the lender. Payday lenders differ. Not only is this lender going to collect less interest but will often have a closed, paid in full account behind you.

So Many Payday Loan Lenders, So Little Time

With hundreds of online payday loan companies on the web, how does one go about selecting one?

It is a bad idea to Google ‘payday loan’ and blindly decides on a company within the first page of result.

It is smart to begin by understanding the basics of a payday loan. A payday loan is a short-term loan that is intended to cover a borrower’s expenses until his or her next payday. These loans are often offered with no credit check. People with less than perfect credit can be approved for a payday loan. The loan process is normally completed within minutes and approved applicants can get their needed cash in as little as an hour.

It can be tempting to borrow more cash than you need. Be conscious of how much you need and be sure that you are capable of repaying the money you intend to borrow. Once you are certain that you need a loan, and that you are capable of responsibly handling a loan follow these steps to help select the payday product that best fits you.

Start by making a list of the items most important in meeting your loan needs. Things you should be looking at are rates, timeliness of getting the funds, convenience, loan terms, trustworthiness and the lender’s reputation. If you know what you are specifically looking for, you will have an easier time finding the loan that best meets your needs.

Rates can vary greatly from lender to lender. Reputable lenders will not try to ‘hide’ their rates from you. Review and compare the rates from the various lenders to find one with a affordable product. If a payday loan lender discloses the rate amount from you until you are ready to commit to the loan, do not trust this lender. Know the costs and rates before you agree to the loan.

The length of the loan is something you need to consider before applying for a payday loan. Will you be able to pay the entire loan off when you get paid next or will it take a check or two? There are payday loan lenders who will extend a loan to you for up to 100 days if necessary. To get a loan for 100 days, additional fees may apply. Remember it is always best to pay back the entire loan amount as quickly as possible.

The approval criteria for payday lenders can vary greatly from one company to the next. Even though there is normally not a credit check performed, the lenders have standards for approving applicants. A couple of things lenders may look into is your ability to repay the loan, how much money you make, and if you have direct deposit. Review the lender’s guidelines and avoid companies who guidelines you are unable to meet.

The trustworthiness of the payday lender is extremely important. Remember, you will be sharing your personal financial information with the company you choose to work with. Ensure they are a credited institution. Verify their website is safe and secure with SSL protection. Take the necessary steps to protect your valuable information.

Predatory payday loan companies will often encourage an applicant to apply for the maximum loan amount. As tempting as it can be, it is financially irresponsible to borrow more money than you can afford to repay. Bearing that in mind, a trustworthy payday loan company won’t even approve you for a loan amount more than you are capable of repaying.

The reputation of a payday loan lender is important. There are free online resources on the web were you can review and compare a variety of lenders. Take the time to search and compare payday loan companies, it could save you a lot of hassle in the future.

Choosing Online Payday Loans Lenders

There are numerous online payday loans lenders and these come up when you run a search. Immediately you are faced with the decision of choosing one or two. How do you spot the best online payday loans lenders? This article will help you spot and choose the best lenders to deal with. I outline 7 things that you need to look for with any payday loans website. Here they are.

1. Lender, broker or introducer
This is your starting point. The payday loans company or firm should reveal this on their “About us” page or somewhere else on the website. A good lender should readily display the fact that they are a registered lender. Registration information is typically displayed on the footer section of the website.

2. Online presence

As you browse through a website what impression do you gather about it? Do they appear professional? What image do they portray? These are important questions to ask of any payday loans website you will deal with.

Contact details
A good payday loans website should display contact details. Ideally you would want to see a physical address of the registered office alongside opening times and days. In addition they should be a contact telephone number, email and/or a fax number. This information is typically found on the “contact us” page.

Tip: Sometimes it is a good check to ring the provided contact telephone number and determine whether a human being actually answers it and that they make reference to the payday loans company in question. If you are diverted to an answering machine – this should raise concern.

Be equally concerned if an online payday loans lender’s website displays neither a physical address nor a contact telephone number. Surely if they are genuine, they should be open about their contact details.

3. About the payday loan

How much is offered
Look out for how much they offer. Companies usually state the minimum and maximum loan amounts they offer. Look out for the maximum amount offered to first time borrowers. If you cannot find this information, look on the frequently asked questions (FAQ) section.

Payday loans charges
There has to be transparency over the charges and interest for borrowing a payday loan. Most websites would have a fees and charges page displaying this information. Also check out late payment fees or default charges should you miss a payment – this information is sometimes on the FAQ.

Most lenders prefer to collect payment from a debit card. Some set a direct debit from your account. Check and establish what means the company will use to collect a payment from you.

4. Payday loan application

Loans criteria
A lending criteria should be readily available for you to review and see if you qualify to apply.

Application process
Next is the loan application process. This should be clearly stated or illustrated. You should know what to expect at every stage of the application. Check out whether the application is done completely online and how long it takes to receive notification of approval. Check to see if you need to submit documents by fax or email. Some lenders may want you to ring and complete the application process over the phone.

Finally check on how long it will take to have the loan in your account once it has been approved. There is usually the ideal option of fast transfers and a BACS transfer which typically takes up to 3 working days and this is usually free of charge.

Tip: There may be a fee or charge for fast transfer of the loan to your bank account. This information is not made clear in some cases. Customers sometimes only get to know about this when they are finalising the application. Do check – the FAQ will sometimes display this.

5. Online security
This is extremely important. The website should be secure and safe for users to submit personal details. Check out the following 3 things that show security of any website.

1st: The web page URL
The URL of the web page address (in this case the application forms) should start with the letters https. A website URL usually begins with http. Take note of the ending letter s in https. This is the bit which shows that the web page is secure.

2nd: The Lock icon
Look for the “lock” icon (in this case on the application form pages). This is displayed somewhere on the browser window of a secure web page.

Tip: Some fraudulent websites are built with an imitation “lock” icon. You can validate the “lock” icon on any website by clicking on it. When you do, details on the website’s security are displayed.

3rd: SSL Certificates
Look out for Secure Sockets Layer (SSL) certificates. SSL protocols have to do with the secure transmission of information between web servers and browsers – in other words they make it safe and secure to pass our personal details over the internet. SSL certificates are issued out by vendors like Comodo, Entrust, GeoTrust, Thawte and Verisign. The certificates are usually displayed somewhere obvious on the web pages.

Tip: You can validate authenticity of the certificate(s) by clicking on them and you will be directed to a page verifying the website’s security.

If all these 3 are in order, then the online lender’s website is safe and secure to input your details.

6. Privacy and information protection
A privacy policy or statement should be readily available for you to review and express your agreement. In most cases you would not physically sign but tick a box.

Tip: Some websites will have a box for you to opt out or opt in to having your application shared or matched with other online payday loans lenders if you are not approved. Watch out for this and take the necessary action.

7. Responsible lending
Most lenders pledge to be a responsible lender. They display a statement highlighting this fact. Check it out and see how they are committed to responsible lending.

In summary, when you are choosing online payday loans lenders, these are the things to consider:

1. The payday loans company – what are they: a registered lender, broker or introducer
2. The impression you gain of the company’s website and can they be contacted
3. Clear information about their loans including interest, charges and repayment
4. Clear information on the application process including lending criteria
5. How secure the website is
6. Do you agree with their privacy policy?
7. Finally, is the company a responsible lender?