Five Things To Check Out When You Apply For a Payday Loan

Are you thinking of going in for a payday loan to meet an unexpected expense? If so, look into these five things before you finalize one. This checklist can help you make smarter choices. You might even end up saving some serious cash!

  • First thing to consider -- do you really need that cash advance? Sure, you need cash right away, but have you looked at other options? The fact is, a payday loan is an extremely expensive source of funds, with Annual Percentage Rates (APRs) ranging from 300% to 1000%. So before you take one, see if you can arrange money by taking an advance from your employer or from your credit union.

    You could also consider borrowing money from friends or family. Depending on your situation, credit card funding might be an option too, because it's usually cheaper than a payday loan.

  • Ask yourself how much you can really repay when the next payday rolls around. Work out an exact number you can commit to. Take a cash advance only for the amount you can repay, considering all charges as well. Obtain funds from other sources for any additional requirements you may have.

    Here's why. If you choose to roll over all or part of the payday loan, you end up paying much more -- additional charges, late fees, etc. Your APRs start climbing rapidly and you may even find yourself trapped in a vicious cycle of payday loan debt. Stay clear of this trap.

  • Apply only for one payday loan at a time. Your application gets reported to a consumer tracking database used by payday lenders and banks. If you apply for multiple loans, the lenders may see the multiple applications and you might end up being rejected by all of them.

  • Go through the lender's approval criteria very carefully. Apply only to one where you can qualify. If you apply to a company that has stringent criteria and get rejected, that can actually hurt your chances of getting approved by another company with more relaxed criteria.

  • If you're applying online, ask yourself if the lender's website seems professional and well-organized. Do they have clear information and guidelines on the site? A comprehensive FAQ?

    Most important -- do they have an SSL certificate on the application page? This indicates data is being transmitted securely. Secure pages have web addresses that begin with "https:" instead of "http:" and in addition, you'll see a lock symbol displayed in your browser. If a lender is using a non-secure page to collect information about you, find another lender!

    • Acting on the above points will help you make better choices about payday loans. The best solution is, of course, to get your personal finances into excellent shape so that you never need to borrow in an emergency.

    About the Author

    Prakash Menon is a financial expert and writer specializing in managing personal debt and providing wealth building solutions. He has written on alternatives to payday loans, personal debt management and other topics.

    In The News:

    pen paper and inkwell


    cat break through


    Federal Housing Administration (FHA)

    FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg.... Read More

    Short Term Loans...are they right for you?

    With less than a week before she was to receive... Read More

    Five Things To Check Out When You Apply For a Payday Loan

    Are you thinking of going in for a payday loan... Read More

    A Guide to Finding Cheap Loans

    Finding cheap loans isn't always easy? it seems like every... Read More

    Information About Debt Consolidation Loans with Bad Credit

    Finding debt consolidation loans with bad credit can be quite... Read More

    Refinance Your Car Loan - 3 Tips For Refinancing Your Auto Loan Online

    Refinancing your car loan is an ideal way to lower... Read More

    Cash Loans: The Good, the Bad, and the Debt-Free

    Happiness is what they're selling. Relief from the crushing weight... Read More

    The Best Way to a Farm Loan Success

    The most important and difficult part in farm mortgage shopping... Read More

    How To Save Money On Car Loans

    Have you noticed that everyone seems to have a newer... Read More

    Financial Aid for College Students - Grants

    The bad news about attending college is that it costs... Read More

    How to Spot and Avoid Predatory Lending

    Predatory lenders promise loans that are "too good to be... Read More

    Finding the Loan UK that Meets Your Needs

    For those in the market for a loan UK ,... Read More

    Personal Loans for Unemployed ? Liberating You from the Tangles of Unemployment

    Like most of the contingencies (the after effects of unemployment... Read More

    A College Loan Will Finance Your Education!

    A college loan has given people all over the United... Read More

    Compare Payday Loan or Cash Advance Lenders Online Before You Borrow

    Comparing payday loan lenders, also called cash advance lenders, online... Read More

    Simple Tips On Getting Your Loan

    So, you want to get a loan?Here are some simple... Read More

    Useful Information About Homeowner Loans UK

    Homeowner loans UK are a very versatile type of personal... Read More

    All About Student Loans

    A student loan is an unsecured loan made by lenders... Read More

    A General Discussion about Unsecured Personal Loans in the UK Financial Market

    Personal loans are offered by lenders such as banks and... Read More

    Bridge Loans: Everything You Wanted To Know

    As the name implies, bridge loans fulfill a vital need... Read More

    UK Loans Guide - Channelising Your Rising Budget in a Productive Mmanner

    Every unknown road needs a milestone to configure where it... Read More

    Are You In The Market For a Car Loan?

    Car loans are a tempting way to purchase a new... Read More

    What Is A Second Mortgage?

    A second mortgage is a loan that is secured by... Read More

    A Guide to Debt Consolidation Loans

    Should you find yourself overcome by debt, you might want... Read More

    Debt Consolidation Tips

    Here are some useful Debt Consolidation tips. Debt consolidation is... Read More

    A Personal Loan And Your Rights

    You can use a personal loan for many different things... Read More

    Guide to Personal Loans

    Here is a useful guide to Personal loans. What is... Read More

    5% Down Vs. 10% Down - A Comparison

    It has always been an issue for home buyers to... Read More

    Loans Guide

    Many people are confused by the different types of loans... Read More

    Online Payday Loans Offer Quick or Instant Approval For a Fast Cash Loan

    Online payday loans companies offer quick approval with their online... Read More

    Bad is the Opposite of Good... Is It? Not with Bad Debt Personal Loans

    'Bad' means 'bad' no matter where you go! It is... Read More

    Parent Loans or Student Loans ? What is Going to be Best for My Child?

    Parent Loans or Student Loans ? what is going to... Read More

    Law Practice Finance

    How do you finance a growing practice? It is impossible... Read More