Payday loans are known to be expensive. The fees and interest on payday loans are about five to ten times higher than those on a credit card. The good thing about a payday loan or cash advance is that you can get the money quickly, and the loan approval process doesn't take too long. Since there is no credit check, that's one less thing to worry about. But if you do get a payday loan, it's important to make sure the fees are as low as possible.
Here are some tips that can help you get a cheap payday loan:
Before you decide, compare 3–6 payday loan companies. Fees charged by payday loan companies can vary a lot. Make sure you compare multiple lenders before you decide. Even if the business says it has the lowest fees. Don't believe what they say.
Read the Small Print: Make sure to read the small print when comparing fees from different payday lenders. If they say their fees are $10 for every $100 you borrow, ask how long that is for. Is that for a 14-day loan or a weekly loan? Make sure you know how much each company charges for every $100 and every 14 days.
Only borrow what you need. Now is not the time to borrow a little extra money "just in case." There will always be a way to get a payday loan. If you need more money, you can borrow it from a different company. Don't borrow more than you really think you'll need. It would be a huge waste of money to end up borrowing more than you needed to pay the interest on money that just sat in your bank account and then give it back to the lender.
Get a loan for as little time as possible - Ask about getting your money early. Does the lender let you pay off the loan early if you're in a position to do so? Make sure you can, because you don't want to pay extra interest on money you no longer need.
