Choose a Cash Advance Lender in 5 Easy Steps
Despite what you’ve heard about a weak economy, dried up lines of credit, and increased obstacles to receiving a conventional loan…a cash advance loan remains a very attainable and easy-to-qualify-for financial tool. In fact, the payday loan industry is very competitive, and as the consumer, you can use that to your advantage. Remember, cash advance loan applications and approvals are designed to be fast, so even if you need cash quickly, you don’t have to be desperate. Take your time, follow our advice, and get the best deal possible.
1. Search Online
Technology has created a more equitable playing field when it comes to quick cash loans. An easy online search will reveal dozens of companies vying for your business. Take the time to read through their “small print.” While you might not be able to determine the exact fees of your loan until you apply, you should be able to get a feel for what interest charges and financing fees might apply, as well as any late or renewal fees that take affect if you can’t pay the loan back on time. You should also be able to determine what payment scheduling terms the company is willing to offer. Doing research online also allows you to read through feedback from previous customers, as well as any negative consumer reports that might appear on your search engine results.
2. Choose the Amount You Need
The golden rule of a paycheck advance loan is to only borrow the amount you need. Payday loans are usually based on your salary, and many companies will loan you as much as an entire paycheck. But just because you can, doesn’t mean you should! Repeat this to yourself: Only borrow as much as you need. Don’t tack on “extra” cash just so you have a little spending money in your pocket. Remember that everything you borrow must be repaid, and the quicker you can repay it, the lower your financing charges will be.
3. Choose a repayment plan
Do yourself a favor and consider your monthly household budget when applying for a quick cash loan. It’s easy to only focus on the here and now…and right now you just need an extra $200 to pay that winter heating bill. But what happens when you pay that with your quick cash loan, and even more bills are waiting to be paid. Be realistic. If you know you can’t meet your financial obligations as well as payback the loan with one paycheck, arrange upfront to spread your payments over two or three pay periods. You will pay more in interest fees upfront, but doing so helps you avoid more expensive late fees from the lender, or insufficient fund fees from your bank.
4. Pay on time
If you can do yourself one favor when using a paycheck advance loan, it is this—pay on time. If used correctly, a payday loan will get you through your cash emergency with no ongoing obligations attached. You pay it off quickly, and you go on with your usual financial routine. But if you don’t pay that loan off on time, your problems deepen. If you default, you will incur late fees, increased financing fees, and possibly insufficient fund fees from your bank if the lender tries to withdraw your payment and the money isn’t there. A $200 loan can quickly become a $300 loan or more. Avoid this financial trap by budgeting wisely, controlling your spending, and paying your debts on time.
5. Read the small print
Agreeing to a payday loan is like signing a contract, and you are obligated to meet the demands of that contract. To protect yourself from any hidden agendas or fees, read the small print. Before you ever agree to take money from a lender, read and understand everything in the contract that you are signing. If you have questions, ask. If you don’t get a good answer, move on to another lender until you are satisfied that all your questions have been answered and your concerns met.
Remember, you are the consumer and you have the right to seek the best deal possible. Follow these five, simple steps when applying for a cash advance loan, and you’ll easily pay your bills while avoiding any long-term financial problems.