At this moment in time, it is well-known that payday loans represent a quick and efficient way to get your hands on some extra cash, considering the fact that millions of people throughout the world have to deal with financial issues on a daily basis.
In the fortunate case that you are employed at a full time job, then chances are that you are eligible for a payday loan, which is great news for all people who are currently dealing with economic hardships. During the last couple of years, the payday loan industry in the U.S. alone, has reached a peak of over $40 billion worth of transactions on a yearly basis. This means that the popularity of such agencies has grown substantially, and that numerous payday loan companies have appeared on the market.
However, choosing the right one for your needs can be quite difficult, especially if you don’t know much about what goes behind the scenes, and how payday loans work in the first place. Based on this, in this particular article, we’ve outlined some of the main aspects that you should keep in mind, whenever you are searching for a payday loan agency.
1. Check their license
At this moment in time, there are numerous unlicensed payday loan agencies operating on the market. While some of these unlicensed companies may practice better interest fees because of their illegal operation, there is absolutely no guarantee that they are honest, and won’t scam you. Additionally, the government will also have no power to protect you, in case you have been the client of an illegal payday loan agency. With this in mind, prior to borrowing money from them, you’ll have to carry out a bit of research, to help determine whether the provider is licensed, and operating legally in your area of jurisdiction. Most payday loans company are more than pleased to show you their proof of licence, in case they’re asked to do so.
2. Keep an eye on interest rates
One of the main aspect that mains payday loan companies a bit more controversial consists of their high interest fees. While it is not uncommon for a person to pay around $15 in interest, for a $100 loan, there are some companies that practice hidden costs, and can cash out more from your account. Based on this, always carefully check the interest fees associated with a payday loan company, prior to submitting your application. Be especially careful with agencies that can offer you cash on the moment, or can instantly transfer the funds to your account, as this makes them subject to higher transaction fees, so you’ll likely be the victim of higher service taxes and interest.
3. Carefully read their terms and conditions
When it comes down to dealing with a payday loan company for the first time, invest your time in reading their terms and conditions. Some payday loans can become due anytime between 14 and 90 days, and the payment period is essential to enabling you to pay back your loan in time. It’s also considered good practice to get a quote from a few agencies, prior to making your decision, so that you’re well-informed on the terms, interest and additional taxes being practiced where you live. If there aren’t many physical agencies around you, don’t be afraid to consult the internet. You’ll quickly find many reputable agencies that can assist you both via the internet, but also via telephone.
Other than following the tips that have been mentioned above, you might also want to ask yourself a couple of questions: does your payday loan agency have the appropriate state license; is your personal information protected by their customer privacy policies; is the provider transparent, and are there any hidden fees; do they have the possibility of giving you the money instantly; do you fully understand the application process that you must follow; do you feel 100% comfortable in their stores, and in taking a loan from them; do they have a good customer support team that clearly answers all the question that you might have; is the agency actively trying to calculate the exact, and final cost of your loan; etc. If the answer is yes to most of these questions, then chances are that you have made the right all, and should go ahead with taking the loan from the agency in question.
Based on everything that has been outlined so far, if you follow these tips, you’ll greatly reduce your chances of being scammed, or being taxed considerably more, thus making the process of getting your payday loan quicker, more efficient and cheaper at the same time, which is great news for anyone dealing with financial issues.