Tips for Borrowing Cash Advance Loans
Posted on Saturday, July 3rd, 2010 at 2:59 pm in Financial Planning, General Payday Loan Tips, Helpful Payday Loan Info
For first-time borrowers, the wealth of information about online payday loan lenders can be overwhelming. Follow these tips to narrow your choices and find the cash advance lender that’s right for you and your financial needs:
-
Do Your Research. Look for online payday loan lenders who are straightforward about service fees payment plans. Check for registered complaints against a lender with the Better Business Bureau and search online forums for direct user experiences.
-
Choose a lender with a good reputation and customer service. Make sure your lender has been in business long enough to earn a trustworthy reputation. Do they provide a mailing address and telephone number to contact with customer inquiries? See what other customers have to say about the lender’s service. Do they have representatives you can speak with over the phone if you have a problem?
-
Understand all service fees and interest rates. It’s important to understand your lender’s fees to determine how much your cash advance loan will cost you. Some online payday loan lenders charge $15 to $20 per $100 borrowed, while others charge a percentage of the total amount borrowed. If your lender charges $15 for every $100 borrowed, a $500 loan will cost you $75 for a 14-day period, or $150 for a full month. Make sure to factor in these fees as you decide whether you can afford your payday loan.
-
Ask about online payday loans with payment plans. Your lender will prefer you to repay your loan and service fee in full at the end of the 14- or 30-day lending period. If you think you might have trouble making a single payment in full, discuss alternate financing options with your online payday loan lender. Some lenders allow their customers to pay with several smaller installments or pay just the interest and roll over the cash advance for another 14-day period. You should understand that choosing to roll over your payday loan will also renew the service fee, so if you can’t afford the full amount opt for an installment plan or find another source for cash instead.
-
Don’t borrow more cash than you need. If you need $500 to fix your car, don’t borrow an extra $50 just because it’s available to you. Only borrow the minimum amount that you need and know that you can afford to pay back with your next pay check. This will keep your interest rate low and keep you from accumulating unnecessary debt.
-
Protect your information. Your online payday loan lender will require sensitive information to process your application, like your social security number to verify your identity and your bank account number to deposit your cash loan. Make sure your lender offers a secure online application that will protect your personal and financial information. Always exercise caution by dealing only with reputable lenders.
Related posts:
How it Works
Complete the short form.
We match you with a lender based on their requirements and direct you to their website.
The lender will then display loan rates, terms and conditions for your acceptance.
Cash is directly deposited to your bank account after approval.