If you need money quickly because of an emergency, you might have to get a payday loan. Most places offer these quick and easy loans, which makes them the best choice when it comes to ease and convenience. In fact, it only takes about 10 minutes or less to fill out an application. But they can also cost a lot of money. Here are some things you can do to get a better deal on a payday loan.
One Can Be Freed First
Payday loan companies want people to know that they can help in times of need, like when you need cash quickly. They also think that if you get one payday loan, you'll be more likely to get another one soon. So, to help you get started, many lenders will give you your first loan for free. This could be a great, interest-free way to get the money you need in a pinch. But not all lenders will do this, so you should carefully read the ad or ask them in person.
On your first loan, you might only be able to borrow a small amount of money, maybe as much as $400. If you pay it back when it's due, you'll be able to get a bigger loan the next time you need one. In some states, payday loan lenders can give you up to $1,500. In other states, the most you can get is $500.
Go shopping
This advice is always good if you're going to spend money. It's the same with your payday loan, and you'll pay more if you don't shop around for the best deal. If this is not your first loan, the interest rates can vary quite a bit from one lender to the next, so you should shop around first. At the moment, interest can be as high as 30 percent or as low as 15 percent. There is a chance that the competition between banks could make these interest rates go down even more. But if you shop around, you can definitely pay much less than with another lender.
Pay Early
Some payday loan companies will do this, but not all. Some of them might lower your interest rate if you pay off your loan early. This can help you save money. There is a chance that local laws could also change this.
If you've never had a cash advance, which is another name for a payday loan, you should know that almost anyone can get one. Your credit score doesn't matter either, because it won't even be checked.
But you will need a job that you've had for at least two months and that pays you more than $1,000 per month. You may be asked to send recent pay stubs and bank account statements by fax to prove this. If you get a "no fax" payday loan, you don't have to send them this information, but they will still need to check it. You can get the money you need (or want) quickly with a fax loan.
In either case, you will also need a checking account that has been open for more than two months. This is where your money will come from and how you'll pay it back when it's due. It will be taken out electronically, or if you gave them a check, they could just run it.
