5 Tips To Finding A Payday Loan

Payday loans are small cash advances which are granted to their customers. They are called payday loans as they offer an advance, repayable on an upcoming payday. There are times where employed individuals may require additional money to cater to some of the emergency needs, and that’s why these loans exist. The average loan amount ranges from $100 to $1,500 and some lenders extend to bigger amounts depending on the credibility of the borrower. However, as these are open resources of funds, it is advised that the amount borrowed is limited to meet the real emergency requirements and should be considered a very short term resource.

Key Tips to find a Payday Loan:

Apply for Payday loans early in the morning and disclose all material information. The lenders normally close the business by 12 noon and are done with their daily target at the early hours of the day. As a borrower, it is recommended to catch the eye of the lender early when they are stress free and ready to start the day. While applying disclose all material facts associated with your side of the loan. The chance of getting an accepted loan is higher when adequate information is presented upfront.

Never apply for loans on multiple websites. There are thousands of websites which offer payday loans in the market and for different terms. However, all these websites scan a few common servers for data regarding the borrower. While scanning, the website might scan for loans applied for and assess that the borrower has already acquired their loan from another website.  There is a high probability that the loan will then be rejected if this is the case.

Check your credit score. This needs to be done before the loan is applied for.  Equifax and Transunion are two common sources to get your credit rating checked. The scores also are able to be improved over time if need be due to previous faulty transactions. Credit scores sometimes depend on the availability or lack of information at the Credit Rating Agencies. These scores can also be improved by submitting proper and up-to-date details.

Charges and interest rates. Contact a lender directly and avoid the middleman in the borrowing process.   The middleman is likely to charge a brokerage fee which would be higher than the rate offered by the lender directly.  Never pay anything upfront to the payday agents. The charges which are over and above the interest rates may be as high as $30 for every $100 and this may turn out to be very expensive. Watch out very sharply for the terms being offered.

Finding a reliable lender. It is very critical that the lender you’re borrowing from is reliable and trustworthy. Check whether the lenders are registered with the Better Business Bureau Association. When having a positive score, they are likely to have a large customer base from many years of operation and hopefully healthy relationships with these individuals. Many lenders also provide a customer support phone line (some are even 24/7!) so if you run in to any questions or complications you can easily get in contact with them. Those that don’t generally receive emails and promise a response within 24-48 hours.

Remember, payday loans are a great asset to take advantage of at times of financial distress. Further, they should not be used on regular occasions as their APR is generally quite high. In this economy especially, they may occur at times when least expected.

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