The Beginner's Manual To A Payday Loan: Five Features To Save You Money

When it is looking like it is going to be tough to pay the rent this month and then your car breaks down, look into a payday loan to help in the meantime. This type of loan is easy to get on the Internet, fast, and can help you out of sticky financial waters, until your next payday comes. Although you will want to look into the features of your payday loan, because there are a lot of companies that offer them and they can vary remarkably. Below are the five characteristics that you want to look for in your cash advance.

First, having the preference to complete your loan applications online is very convenient. Normally, a lender would require that you fax your documents in, before you were considered for a loan. Presently, many companies provide 'no faxing' applications to make it very easy for anyone to get quick cash.

If a lending firm offers you 'no faxing,' then you also want to look for instant approvals. With your application in their hands after you press the send button, the lender can approve it right away. This can put quick cash in your bank account in less than an hour, because the processing time is dramatically reduced.

Third, a cash advance from a payday loan will have an interest fee, so before you commit to a specific lending firm make sure that you comprehend what the fee is. Normally, loan fees are around $15 to $40 dollars for every $100 dollars that you are paid. If we were to do the math on two examples, here's Bill who is loaned $1,000 dollars with a 20% rate, while Sandy is also loaned $1,000 dollars but at a 25% rate. How much money Bill save versus Sandy? Well, Bill will pay $200 dollars, while Sandy pays $250 dollars, so he will still have $50 dollars. This example should point out that you want to make sure you understand the fees that you will be charged and look for the best rate.

Also, look for companies that offer extensions on when you are required to pay back your loan. Payday loans typically must be paid back in 7 to 14 days, but with an extension you have the option to extend it. Extensions give you some extra breathing room, if another situation comes up or you can't pay on the due date for whatever reason.

Finally, in some cases companies will try to get your business with discounts, so look around. Now and again, lenders will offer a discount to good customers or someone who has signed up for a promotion. If you keep your head up and look for deals, then you can get the best rate for your payday loan.

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