A payday loan has many names. It can be called a check advance loan, a cash advance loan, a deferred-deposit check loan or a post-dated check loan. The Federal Trade Commission in the USA calls it “costly cash”. No matter what you call it, it’s the same thing: a small short-term loan (usually $50 to $1500) with a quite high interest rate. Since instant payday loans are so expensive, you should save on its expenses as much as you can.
How to save costs on payday loans?
If you‘ll start searching for a cheap and affordable payday loan, you’ll notice that there are a lot of offers to choose from. It is strongly recommended not to take the first loan offer. You should search trough as many as you can find to ensure you find the best offer. You can find payday loan offers on the internet or in your local newspaper. First of all, eliminate possible scammers. How to avoid loan scammers? Some red flags can tip you off to scammers’ tricks. For example: Fees that aren’t disclosed clearly or prominently. Scam lenders may say you’ve been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away. Other warning signs are: Lender isn’t interested in your credit history, lender who is not registered in your state, or lender asks you to wire money or pay an individual. Don’t make a payment for a loan or credit card directly to an individual; legitimate lenders don’t ask anyone to do that.
Make a chart of lenders and loan offers, and then compare their advantages and disadvantages like interest rate and hidden fees. How much is the real price of loan? Allows lender rollover? Allows lender early repayment of the loan? Some companies will allow you to do this if you are able to. Doing so will not necessarily reduce your financial charges, but some companies may reduce the applied fees. How high is the fee, if you will will pay late?
When you choose some candidates, ask people about their personal experience with those lenders, check forums or social networks. You will learn if there is something wrong or, better yet, see that nothing is wrong at all. If there is something wrong, cross the lender off your list.