If you find yourself in a position where you need to borrow a small amount of money without the need of collateral, a pay day loan may be just what you need. But before you apply for it, make sure you have no other choices available to you. Cash advances can cost you a lot in fees, so any other alternative could be a better solution for your overall financial situation.
Pay Day Loan Applications
Poor credit does not necessarily exclude you from applying for a payday loan. Many people who could benefit greatly from these services never even bother applying, due to their spotty credit history. Many payday lenders actually will lend you money, so long as you can prove that have some form of income with the possibility repaying the loan. In fact you can apply for short term loan even if you are unemployed.
Poor credit does not necessarily exclude you from applying for an unsecured short term personal loan. Many people who could benefit greatly from these services never even bother applying, due to their spotty credit history. Many payday lenders actually will lend you money, so long as you can prove that you have employment or at least some form of repaying the loan.
Keep in mind the term of most paydays loans is fairly short, usually about 1 week up to 1 month, so make sure that you can comfortably repay the loan in that time frame. Failure to repay the loan may result in expensive fees, and penalties. It is best not to borrow if you think there is a possibility that you won't be able to pay it back within that time frame. Do not borrow more money than you can afford to pay back.
Interest Rates (APR) - Use Cash Advances Safely And Carefully
Interest rates on payday cash advances are high, so it makes sense to limit the amount you borrow to the bare minimum. In fact, you should only apply in case of a dire emergency and there is nowhere else to turn to for cash. It can be difficult to repay such high-interest rates on time, leading to a negative credit cycle. Do not use payday loans to purchase unnecessary items, or as a way to secure extra cash flow. Avoid using these expensive loans, to cover your monthly expenses.
When it comes to your financial health, double or triple-dipping on payday advances is one of the worst things you can do. It should be obvious that you are digging yourself into a deeper hole with each new loan you take out, even though you may have a genuine financial emergency. To get the least expensive loan, choose a lender who loans the money directly, instead of one who is lending someone else's funds. A broker will charge higher fees than a direct lender. This is because the indirect lender must keep some money for himself.
Evaluate several lenders to see if one offers a better interest rate than the others. There are many online payday loan companies. They are all in it for the money and want your business so some may offer better deals than others. First time borrowers may enjoy a special discount. Before choosing a particular lender, make sure you check out all of your available options. If you take time to compare payday advances versus personal loans, you might see that there may be other lenders that could give you better rates for payday advances. This largely depends on credit rating and how much you want to borrow. By taking the time to look into different loan options, you will be sure to find the best possible deal.
Although you should never use unsecured payday advances as a primary way to pay your bills due to the high interest rates, they can be a great help if you need money quickly and have no other options. It is difficult to be in debt. It is our sincere hope that this article has provided some information that will be of help to you. It is critical that you know what you're doing and be sure that you have the information you need to make the right decision if you are thinking about getting one of these loans.