Tips On Applying For Loans - Articles & Advice

What To Check Out When You Apply For A Payday Loan

Are you thinking of going in for a payday loan to meet an unexpected expense? If yes, look into these seven things before you finalize one. This checklist can help you make smarter choices. You might even end up saving some serious cash!

First thing to consider -- do you really need that cash advance? Sure, you need cash right away, but have you looked at other options? The fact is, a payday loan is an extremely expensive source of funds, with Annual Percentage Rates (APRs) ranging from 300% to 1000%. So before you take one, see if you can arrange money by taking an advance from your employer or from your credit union.

You could also consider borrowing money from friends or family. Depending on your situation, credit card funding might be an option too, because it’s usually cheaper than a payday loan. Be careful with this alternative, though.

Ask yourself how much you can really repay when the next payday rolls around. Work out an exact number you can commit to. Take a cash advance only for the amount you can repay, including all charges that apply. Obtain funds from other sources for any additional requirements you may have.

Here’s why. If you choose to roll over all or part of the payday loan, you end up paying much more -- additional charges, late fees, etc. Your APRs start climbing rapidly and you may even find yourself trapped in a vicious cycle of payday loan debt. Stay clear of this trap.

Apply only for one payday loan at a time. Your application gets reported to a consumer tracking database used by payday lenders and banks. If you apply for multiple loans, the lenders may see the multiple applications and you might end up being rejected by all of them.

Go through the lender’s approval criteria very carefully. Apply only to one where you can qualify. If you apply to a company that has stringent criteria and get rejected, that can actually hurt your chances of getting approved by another company with more relaxed criteria.

If you’re applying online, ask yourself if the lender’s website seems professional and well-organized. Do they have clear information and guidelines on the site? A comprehensive FAQ?

If you need clarifications on anything, call up and ask. In fact, it’s a good idea to ask a few questions to each loan provider you’re considering. That way you get a feel for their responsiveness and get additional information to base your decision on.

Most important -- do they have an SSL certificate on the application page? This indicates data is being transmitted securely. Secure pages have web addresses that begin with “https:” instead of “http:” and in addition, you’ll see a lock symbol displayed in your browser. If a lender is using a non-secure page to collect information about you, find another lender!

See this page for 10 things to check out before you finalize a payday loan: http://www.payday-cashadvances.net

Acting on the above points will help you make better choices about payday loans. The best solution is, of course, to get your personal finances into excellent shape so that you never need to borrow in an emergency.

Georg Finder, president of CM Financial Services of Fullerton, California, wrote and presents the first State Bar accepted continuing legal education seminar on credit reports and credit damage. He can be reached at gfinder@creditdamage.com (714) 441-0900 or at www.creditdamage.com. inquiries@creditdamage.com

Related Pages

Refinance Tax Advice - Tax treatment and deductions for points paid to refinance mortgage - How and when points are deductible for mortgage refinance loans.

Mortgage Refinancing - Tips on when mortgage refinancing is the right decision - How to avoid paying points and other lender fees when refinancing your mortgage.

Real Estate Investment Tips - Seven real estate investment tips - Best sources for investment property loans - How to find good real estate investment properties for resale.

Mortgage Brokers - Shop these top lenders for comparison quotes.

Credit History and Approval - How to get a free credit report - Quick fixes to qualify for a better rate.

Down Payment Leverage - Avoid PMI with a two-loan strategy. How to grow your equity faster.

Online Lenders - Tips on evaluating online lenders and their offerings.

Refinance- Tips on when refinancing is the right decision - How to avoid paying points and other lender fees.

Home Loan Online - Discover the best ways to get the lowest rates - Links for checking current rates.

Real Estate Settlement Procedures - Your rights under the Real Estate Settlement Procedures Act - What protections you are entitled to and what needs to be disclosed to you.

Private Mortgage Loans - When to use private mortgage loans as an alternative funding resource - Qualifying for a private mortgage loan is based on the property value, not your personal credit.

In The News

	Web Home-Loans-Help.com