Payday loans have become extremely popular over the last twenty years or so. The Internet has made obtaining these types of loans easier than ever with simplistic applications and timely approval. The fact that there are no credit checks when borrowing this way is also a contributing factor to the popularity of these quick cash loans.
But like any other type of borrowing, knowing what you are getting yourself into means doing your homework and educating yourself on the process in which a payday loan is given out. Payday lender locations run the gamut all over the country and even offshore.
Thousands of payday loan lenders can be found online and hundreds servicing customers in brick-and-mortar locations. Consumers can also look to Tribal based companies as well as offshore lenders. How do you choose? Who can you trust? Are all lenders the same? Consider the following when looking for the right payday loan and payday lender:
*Make sure they are the lender- Finding a reputable lender starts with making sure they are the ones loaning you the money. Many online companies are "third-party" meaning they take your information and sell it to a lender who will actually fund your loan. Keep in mind, the lender who buys the loan nay not be licensed in your state. This can lead to higher interest rates, less customer support and the possibility of your personal information being sender sold to multiple parties.
*Find their license number- States that allow payday lenders to operate have passed strict laws in regards to payday loan lending. Each state determines, on their own, how much a consumer can borrow and caps are put on interest rates and fees in order to protect the borrower. Taking out a loan with an uninsured lender can cause the borrower to be charged illegally high interest rates as well has having problems with loan payoff. You should also be able to see how much it will cost you to borrow. Good lenders will have an example of a loan amount with the interest and fees attached.
*Locate their physical address- Any reputable online lender should have a physical address as well. If they don't have one listed on their website, this is a warning sign. Try looking on the "about us" or "FAQs" pages.
*Read the privacy policy- This gives the consumer the option to opt-out of marketing communications and information sharing. Even if you don't read the policy, making sure the lender has one on their site or visible in their storefront location is a good indicator that they are reputable. If they don't have one in place? Move onto finding another lender.
*Find out how it works- Make sure you have a clear grasp on what the lenders' loan policies are and how the application process works. Prepare yourself ahead of time to understand what information you will need to give, how long you will have to pay back and what will happen should you be unable to repay.
Someone once said... "Knowledge is key". When you arm yourself with information you are much more likely have a good experience and feel good about the choices you have made. This too rings true when it comes to getting a payday loan!
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