A Borrower’s Guide to Payday Loans (revised)

 

 

There are times in everyone’s life that they need some help. The assistance may be as simple as someone helping you move a large piece of furniture from one floor to another. But there are also times when the needed help can be much more serious in nature.

 

There are times when we need money and we need it now. Payday loans can be of great assistance to a borrower especially in times of emergencies. But before you resort to this type of loan, you have to first be informed about the process and why you might want to consider one.

 

The Expense of a Payday Loan

 

First be aware that payday loans will cost you. Quite often they are criticized for the extremely high interest rates they charge. Be informed that these rates can differ radically depending upon who you go through for a payday loan. Not all cash advances are created equal, as it were. So be sure to do your homework; call around and get several quotes. Also, by paying back a payday loan on time, you can greatly reduce the amount of money you will be obligated to reimburse.

 

Difficulty of Acquiring a Payday Loan

 

Generally speaking most people will qualify for a payday loan. One of the reasons many people request a payday loan is due to the simplicity of acquiring money when they need it for emergencies. If your credit is less than admirable and if the credit agencies have several black marks against you, look for those places that offer loans “on Teletrack.” This agency tracks all your financial dealings; if a payday loan agency is willing to overlook this agency, you can usually get the money you are after without exception.

 

Fraud

 

No matter with whom you make transactions, you want to ensure that you are protected from fraud. There are disreputable agencies out there that can use your information against you, or file reports against you for failing to follow their rules and pay back at the rates they charge. You will want to research the payday loan company and most importantly acquire endorsements from those who have conducted business with them.

 

Check with the Better Business Bureau and see how they are rated and what, if any, complaints have been lodged against this company. Whenever you are dealing with money and your personal information, your identity is possibly at risk if you are not being careful. If there is any concern, find another method of obtaining the money you need.

 

Negotiating Terms

Image via Wikipedia

 

Typically, you won’t have much control over the terms of the payday loan. They may offer several different options, packages, etc., but they will probably depend upon your ability to prove your trustworthiness to repay the loan within a prescribed time period. Remember that for the most part these are loans which are not meant to be for high amounts of money and not for extended periods of time.

Moreover, take note that these loans are for EMERGENCY purposes only, and it should be avoided that the money you get be used for paying bills and other sorts of non-emergency obligatory payments. With these things in mind, you will be better equipped in handling your personal loan application.


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