Everyone has times when they don't have enough money to cover their bills until their next paycheck. It happens to more people than you think, whether it's because of an emergency car repair, an injury that isn't covered by health insurance, or some other emergency. You're not alone. Most people run out of money before the end of the month, and sometimes a payday loan is the best way to get by.
Here are 10 things you should think about before getting a payday loan.
- You need to read the fine print of your payday loan and understand it.
- You need to know what the rules are for the payday loan you want.
- You should know what will happen if you don't pay back the loan on time.
- Before you choose a payday loan company, make sure it is registered with the Better Business Bureau and has no complaints that haven't been resolved.
- You must be at least 18 years old and have a full-time job to be eligible for a payday loan.
- When you apply for a payday loan online or in person, you will need proof of these things to show the lender that you are a trustworthy risk and will be able to pay back your payday loan.
- You need a steady income every week, every two weeks, or every month.
- When choosing a payday loan company online, the company's website needs to make it clear what the fees are and how much the interest rate is.
- You need a checking account or a savings account.
There are a lot of legitimate payday loan companies online, but you should protect yourself by reading the small print. One rule of thumb I use is that if a company is advertising on the internet, it is probably reliable because advertising costs money and the company would have to be making money to pay for the advertising. Most customers won't do business with a company that doesn't have a good reputation for very long. Eventually, the company will go out of business and won't have any money to spend on advertising.
As you think about the above tips, remember that you need to be able to pay back your payday loan and still pay your bills for the following week. Payday loans are a good idea sometimes, but you need to be smart about how you use them to solve short-term cash flow problems.
