The Best Payday Loan Company For You

A lender is presenting a contract to be signed
Best Deals On Payday Loans
Part 1 How To Identify Safe Payday Loans
Part 2 Payday Loans Online And How To Apply
Part 3 The Best Payday Loan Company For You
Part 4 Getting Financial Help Without A Payday Loan

Needing immediate access to some money is liable to make you less careful about applying for a payday loan. Depending on the urgency of the problem it is tempting to go for the first company that will accept you so that you get your funds quickly. However, if you do a little research in advance you can find the best deal and one that is going to cost you the least. In this article we examine:

  • How to find a good deal
  • Payday loan lenders and brokers
  • State by state regulation
  • Payday loan interest rates

Research and review before taking out a payday loan

First of all, instead of restricting your choice to only local lenders, it is better to go for an established business that has had a presence in the market for some years. Many payday lenders operate through storefront premises but also have an online presence so you can do your research through the Internet.

Payday loan lenders and brokers

It is most important to avoid using a broker when looking for a payday loan. Some credit brokers will pretend to be direct lenders and you could find yourself paying fees simply for them to pass on your details to a direct lender.

Payday loan brokers may sell on your personal details to other lenders

No lender should ask for an upfront fee before offering you a loan and if this happens it will probably be a broker. A broker might also ask for your bank account details as a means of identification and then take money from your account as a fee for referring you to a direct lender. Therefore, never release information about your bank checking account unless you have signed the agreement for a loan. Brokers may also sell on your personal details to other lenders which could result in a surge of calls offering you a loan.

Different regulations for each state

An important point to think about is the different payday loan regulations that apply to each state. If you are unable to make the full repayment some lenders will allow you to extend the loan term instead of asking you to take out another loan to pay off the first one. Whilst this will mean extra costs in interest it is preferable to getting into a situation where you are constantly borrowing new sums of money every month.

Another important point to consider is whether the lender will allow you to make the repayment early without any penalties. You may find yourself able to repay the loan but unless the terms are flexible you will still have to make the full interest payment.

A man and woman are shaking hands over a financial agreement

Some storefront lenders may also offer you a wider variety of services to those on offer from online lenders. Alternatives on offer from some lenders include car title loans, installment loans and check cashing services.

Specialized payday loans

Many payday lenders offer loans to the unemployed. So, if you are out of work and on benefit payments, the best deal may come from a lender which will accept social security or disability benefits as proof of income. Anyone who is self employed, a freelancer or who is a sub contractor can also look for a deal from lenders who specialize in loans for these categories of employment.

Taking extra care

When looking for a good deal for a payday loan, you should always look into the history of the company to see whether or not it has been subject to any fines from regulatory bodies or any lawsuits.

Some lenders may have been subject to mergers so any loan that you take out might end up in the hands of another company.

Avoid taking out rollover loans. This is the best way to keep out of debt. Some states do not allow rollovers or renewals and some also impose a cooling off period between the signing of the agreement and the receipt of the funds.

There may also be restrictions on the number of loans you can take out at any one time. All of these factors come into play when you are looking for the best deal. You should also be aware of the full amount that will be demanded when the loan repayment date becomes due. A reputable and ethical lender will always be up front about the total costs of borrowing.

Payday loans and interest rates

While interest rates are very important when you are looking to borrow money, they are not the be all and end all of the deal. Payday loans are typically the most expensive way to borrow money, even more expensive than a credit card, but, how the deal is conducted is just as important.

A man is shown signing paperwork regarding a financial product

If you live in a state that does not impose a cap on interest rates you can expect to be paying between 400% APR and 650% APR. However, you may find that the term of the loan is strictly limited to 14 days. This means that paying an interest rate of 391% APR would amount to costs of $15 for a loan of $100 over 14 days.

What other lending options to look for

If you can find a lender that is offering a reasonable interest rate for the short term of a loan, there are some other factors to look for when choosing a good payday deal. Firstly, make sure that the business is a direct lender and avoid paying extra costs that a broker will charge. Secondly, look for a company that pays out the funds the same day or within one day. If you are in urgent need of cash you do not want to be waiting a week for your money.

Thirdly, if you have a poor credit rating, look for a company that approves loans without any credit checks. Using a payday loan will not improve your poor credit score but it won’t harm it either as long as you make the repayment in full and on time. Finally, beware of online lenders who operate on tribal lands. There are some companies which have found ways to get around the laws relating to payday loans and they charge very very high interest rates. The government is now trying to crack down on these predatory lenders so stick to a reputable business that has been operating for some years.

Best Deals On Payday Loans
Part 1 How To Identify Safe Payday Loans
Part 2 Payday Loans Online And How To Apply
Part 3 The Best Payday Loan Company For You
Part 4 Getting Financial Help Without A Payday Loan

About the author

David Warren

David Warren is an expert on personal loans across the United States. His career in banking has helped make David the loans specialist that he is today. He shares his analysis and insight into the personal finance industry on onlinecreditusa.com