Countless Americans are floundering at a financial level these days.
Consider the current level of US consumer debt. This startling figure hovers just under $14 trillion right now. That’s trillion, with a 't'!
This outlandish level of debt provides an indication of the financial pressure many people are under. Unable to make ends meet, they take out a loan as the only alternative.
Are you in a similar situation right now?
Well, there’s every chance you’re looking for a payday loan to tide you over. Easily accessible to anybody in need (even when bad credit scores are a factor), they’re handy options for anybody who finds themselves in financial hardship.
With an endless list of lenders out there, though, the tricky part is finding the right payday advance loans for the job. Want some help doing exactly that?
Read on to discover our top tips for finding and picking the best payday loans possible.
Always Remember Interest Rates
Payday loans provide quick and easy access to vital cash, but it comes at a cost! Almost every loan provider in this niche will charge sky-high interest rates.
At the end of the day, this is how they make their money.
After all, offering loans to people with bad credit isn’t without risk. As well-intentioned as they might be, there’s a higher chance that bad credit borrowers won’t be able to repay the loan as planned. Lenders charge a significant rate of interest to make that risk worthwhile.
Make sure you consider the interest rates of the different providers at your disposal. Calculate the overall cost of the loan plus interest and ensure you have the means to repay it on time. Don’t, and you can soon end up in a vicious circle of missed repayments and spiraling debt.
Steer Clear of Sharks
Most payday loan providers are legitimate entities who want to help.
Sure, they charge high rates of interest, but that’s simply the cost of entry in this domain. They’ll still provide you with the cash you need and get you out of a bind in the process.
Some, however, are only out there for the money. They’re referred to as ‘loan sharks’ and actively want to find borrowers who can’t afford to repay their loans.
Why? Because they make a sizeable living off the missed repayments and late fees.
They make it as easy as possible to access the cash, slap significant interest rates on top, and often apply pressure to get you to sign the dotted line. You get your money. But the interest makes it near-impossible to repay.
One missed repayment adds to the overall burden of debt, which means there’s even more to repay next month. That cycle continues until you’re far worse off than when you started. Our advice?
Avoid these kinds of lenders like the plague!
Check the Website for Credibility
The first rule of separating the sharks from the good guys? Check their website.
You can sometimes tell a lot about the operation from the standard/style of the site.
A high-quality website of a payday lender suggests they’re a legitimate operation. By contrast, any grammatical errors, spelling mistakes, dodgy graphics, and general lack of professionalism aren’t exactly reassuring.
Try to find their physical office address too; be wary if you can’t.
Now, it’s true that some lenders do operate online only (in other words, they’re a trustworthy company without a physical office). More often than not, though, a physical address is a good sign; a lack of one is not. Find the address and run it through Google Maps to verify its location.
This isn’t, of course, a fool-proof method of identifying a loan shark. Nor is it necessarily a way to pick the best payday loan for the job (for instance, some reliable lenders offer reasonable terms from a shocking website). Nevertheless, it’s a good place to start.
Contact the Lender
The main benefit of getting a payday loan online is how easy it is. You log on, input your details, and walk away with the money you need in no time at all.
But there’s a danger in that too.
Basically, you never have to talk to a human being! The result? It’s harder to verify that you’re dealing with a fair, reasonable, and trustworthy company.
That’s why we suggest that you take the time to call the customer service helpline on their website. If you experience anything less than a friendly, helpful, and responsive operator on the line, then it may be best to look elsewhere.
Verify the Law
Did you know that payday loans are illegal in some states?
Well, you do now! Even if they’re not illegal, there might be rules imposed that restrict the APR a lender can charge on the loan.
Both of these factors can help you decide if a payday loan lender is right for you.
Do some digging to unearth the rules in your state. If you’re being offered a loan in a state where it’s illegal, then you know to avoid it. The same goes if you’re offered a loan with a sky-high APR that exceeds the permissible rate in your state.
Look elsewhere until you find a payday loan lender that operates in line with the law.
Find the Best Possible Payday Loan
Most people in America aren’t exactly plush for cash right now.
These are trying times, fraught with financial hardship. For many, taking on one form of debt or another is the only way to make ends meet.
The good news is that there’s no shortage of payday loan providers out there that can deliver the goods. The bad news is that not all of them are made equal! Finding the best possible payday loans company isn’t always easy.
Hopefully, though, this post on payday loan options will help you do it.
Would you like to read more payday loan articles like this one? You’re in luck! Browse the ‘Loans’ section of our Frugal Finance website now.
