There's a time in everyone's life where their happiness works against them and they need money in a hurry. It may be something less like a car crash or something that's big like getting into the emergency room. Whatever the reason, you feel completely helpless, making things even worse. You are on the mercy of others. For many of us, it's one of the hardest things to ask for help.
So what do you do when you are in urgent need of money and have no one left to turn? It is called a payday loan. Payday loans are available in almost all states. All loans are not the same. To find the best payday loan, you need to dig a little.
Payday loans are usually considered to be very expensive when it comes to interest rates, but when looking at it in perspective they are really not that bad. If you are missing a payment on a credit card, which would affect your credit rating and cost you $ 29 for late payment, the fees you pay for a payday loan appear cheap. If you do not have a credit card payment, your interest expense will increase on any loan you need in the future for a few years.
Let's say you're buying a new car for $ 10,000. If you have good credit, your interest rate may be as low as 7% -8%. Your payment would be about $ 200 / mo. If you have bad credit because you have no credit card payments, your interest rate may be as high as 18% -21%. Your payment will now be balloon to $ 250 / mo, a 25% increase in your monthly payment. Is not it strange that people with bad credit never come forward?
Would you rather make a payment of $ 50 to use a payday loan to save your credit or pay $ 50 a month extra for 5 years when you buy a car? Given the expense of a payday loan, it's worth your time to shop to find the best payday loans. There are literally hundreds of websites that offer payday loans. How do you know if you get the best deal?
The government realized long ago that it is very difficult to compare one loan to another. Some lenders choose a low interest rate and high one-off fees while others charge low fees and high interest rates. How can you compare those apples to apples?
The answer to it is to compare the APR, or annual percentage. This is a standardized formula that takes into account all fees plus the monthly rate. All loans are required to tell APR, so which loan with the lowest APR is the best loan.
Another way is to find the best payday loans the loan is to find the lender that best matches your requirements. Lenders have a profile of what they want and will not accept. For example, some people do not have access to a fax. The lender generally needs you to prove your income. Some lenders will call your employer for verification, some just need a paystub. If you do not have a fax machine, they must spend time trying to verify your employment on the phone. It takes more time and money. This will be reflected in the prices you pay. If you have access to a fax, why pay the penalty to go to a lender who does not need to fax? It may be easier, but it will cost you money, not to mention that someone at work will know that you applied for a payday loan.
If you have bad credit, you pay a higher interest rate than if you have good credit. Bad credit simply means that the borrower does not pay his bills. The lender takes greater risks for loans to people who do not pay their bills. To compensate them for the risk, they charge higher fees. If you have good credit, it may be your advantage to take a longer term loan instead of a payday card that generally lasts only 2 weeks.
The best plan is to carefully investigate each lender. See what their requirements are. Sometimes it is difficult because lenders often do not list the criteria. There are websites that show the lending criteria in many different companies, so you can compare them side by side. It is not meaningful to file an application with a lender who does not lend to the military if you are in armed services. They can find you a loan but it will be highest because they will not lend you the money themselves, they will find another lender and sell them your application and increase your costs.
Keep in mind that when you search for the best payday loans you will find differences in April. Just because a lender offers you a loan you do not have to take it. In fact, you are not required until you accept the offer. Sometimes put in two or three applications, you can choose the lowest prices for free. The best way to keep costs down is not to need a loan in the first place, but it's not always realistic. It is possible to find the best payroll loan if you do some homework.