When something unexpected comes up, you might need money right now. A payday loan can help with that; it will allow you to have the money you need to get by. This article will explain the basics of cash advances and help you decide if this type of loan is right for you.
When applying for cash advances, make sure you pay them back as soon as they’re due. Never extend them. The interest will keep accruing if the loan is continuously extended, making the repayment process difficult.
Watch out for automatic additions of finance charges to future pay periods. When this happens, you end up paying the interest and other fees, and the original loan doesn’t get paid off. Consumers have been known to pay five times the original value before ever getting out of the loan.
Be on full alert for scams artists when it comes to cash advances. There are organizations that present themselves as payday loan companies but actually want to steal your money. Check the BBB website for the reputation of any loan company you are thinking about doing business with.
Safeguard your personal information if you plan to use a payday loan service. Only give out personal information (e.g. Social Security number, bank account information) to reputable companies. This information could be used to steal your identity; therefore, ensure you use a reputable company.
Prior to even applying for a payday loan, it’s crucial that your work history is a stable one. Three months of stable work is what many lenders expect before they give you a loan. You will have to most likely submit your paycheck stubs to the lender.
Before committing to a payday loan, try to obtain a loan from elsewhere. Even though credit cards charge relatively high interest rates on cash advances, for instance, they are still not nearly as high as those associated with a payday loan. Consult with your family and friends to find out if they can loan you the money you need.
When thinking of taking out a payday loan it is best to only request an amount that you are sure to pay back on time. Being offered extra money may be tempting but it can cause major problems at payback time.
Make sure you stop and think before getting a payday loan. Did you realize that a payday loan has an average APR between 378 – 780 percent? Therefore, it will cost you about 1/4 of the money that you borrow in interest. If it is the only way to get the money you need, it may be worth it.
Make sure you understand cash advance loans are just a solution for the short run. Debt counseling should be in order if you frequently find yourself needing extra money to get you through the month.
Cash advance loans are primarily for taking care of unexpected expenses, but they can (very occasionally) be a money management tool. This will help you to set up a budget, so you are prepared for the future. From that perspective, you can still come out ahead even with the larger repayment amount. Be certain to approach things sensibly.
With all of the information you learned from cash advance loans, you should now feel a bit better about your financial situation. As you can see, payday cash advances can be a blessing or a curse depending on how you go about them. With the information you’ve learned here, you can use the payday loan as a blessing to get out of your financial bind.