Due to the high cost of living, approximately 12 million Americans apply for payday loans yearly. Payday loan lenders make roughly $9 billion in loan fees. The high cost of these loans makes borrowers quickly take more loans to cover their expenses.
This cycle of borrowing has led to the emergence of many payday loan online lenders. Their services have played a vital role in helping consumers survive through their payment cycles. If you’re short of cash, you’re probably in search of genuine payday loan lenders.
Before we delve into how to find the best lenders, here are a few things you need to know.
Keep on reading!
What Are Payday Loans?
Payday loans refer to an alternative form of credit which you can access quickly. They’re ideal for people with bad credit or lower incomes. The loans attract higher interest rates than traditional loans because they’re processed urgently.
Most of the consumers in search of these bad credit loans would typically not be eligible for other personal loans. Since they are short-term loans, they also have high costs attached, usually between $50 and $1,000 depending on the amount borrowed.
Most of the people who apply for payday loans visit a storefront to get the facility. People living in urban arrears are more likely to get payday loans than those living elsewhere. Surprisingly, the money they get in the form of these loans goes into meeting recurring expenses.
Things like rent, credit card bills, and food are covered using payday loans. This implies that the borrowers experience an ongoing cash shortage and are always in need of more income. Whatever your reason for seeking a payday loan no credit check instant approval, here’s how you can get a payday loan lender.
Factors to Consider When Looking for Payday Loan Lenders
When in search of a payday loan, there are questions you need to ask yourself.
1. Would You Prefer a Secured Loan?
While it shouldn’t be difficult to get a short-term unsecured loan, some lenders will ask for collateral. If you’re in a position to provide your car’s title as collateral for example, the faster you’ll get the loan.
2. Has the Lender Got an Online Presence and Store Network?
A personal loan no credit check lender worth their salt should provide you with flexible and convenient options in borrowing. As such, they should have an extensive network of stores where you can walk in and apply. Alternatively, they should have a website where you can manage your loan online.
Check out the features of the website. Does it have a customer relation service? If not, you may want to stay away from such a company.
Payday loan lenders who know their business well can’t be without a customer service portal. Customer relation services include live chat, email address, or phone number that allow for interactive communication. It’s a determinant of how genuine, trustworthy, approachable, and friendly the company is towards its customers.
3. How Long Does the Lender Take to Process the Loan?
Most short-term loans lenders provide them within 24 hours. This is the ideal time to have a payday loan processed. There are payday loan lenders who’ll provide you with prepaid debit card loans.
They give you quick access to funds immediately after approval so you can use the funds anytime.
As you find out about the period of loan processing, you also need to check other loan terms. For example, does the lender require you to pay back the full amount at the end of the month? Some lenders offer flexible options, allowing you to extend repayment from one date to another.
If the lender you choose offers the flexibility of payments, find out the fees charged for the offer. In most cases, you’ll find that the extension comes at an expense. Sometimes you’ll find that paying in full on the due date is cheaper than extending your payments.
4. How Much Do They Charge as Fees?
The best payday loan no credit check lenders strive to give you quick access to funds within a short time. In the same way, they charge a certain amount of fees for this service. Ensure you find out how much you’re likely to pay for the amount you need.
Some lenders charge a reasonable rate of about 15%, while others ask for as much as 50%. You might want to work with the lender that charges the lowest fees. As a tip, avoid going to payday loan lenders who don’t disclose their interest rates.
Lack of transparency is a strong red flag that the lender might not be genuine. You might be faced with hefty rates on the day of repayment, more than what you can afford.
5. Does the Lender Offer Loans to Borrowers With Bad Credit?
Most short-term loan applications are from borrowers with bad credit. Most lenders accept these applications in exchange for charging high interest rates and loan fees. If a lender denies you a loan because you have bad credit, simply go to the next.
6. Does the Payday Loan Lender You Choose to Comply With the Law?
In as much as you need quick cash, you can’t afford to be reckless. You don’t want to get involved with a lender that operates illegally. They’ll most likely charge you exorbitant fees and interest rate.
A legit lender will always offer Annual Percentage Rates that are in line with what the law stipulates. One way to determine if the payday loan no credit check instant cash lender is within limits is to check the maximum APR in your locality. You can begin by searching the internet.
Once you’re aware of the rates, compare what different lenders offer. The one that yields a rate that complies with the law should be the most legit to borrow from.
You need to be wary of lenders who persuade you to take the highest loan amount. No one should coerce you to take a loan you won’t be comfortable repaying. Such a lender sees an opportunity of charging you default fees in case you’re unable to pay on the due date.
What Are Your Options?
Before you append your signature for a payday loan, there are other options you may want to look into. They’ll probably cost you less and not put a lot of pressure on your financial situation.
1. Negotiate Your Current Loan Repayments
If there are installment loan companies you owe money, you could call them and ask for a more flexible repayment schedule. A reduced rate and installment amount could help you save the amount you seek in the form of a payday loan.
2. Get a Cash Advance on Your Credit Card
You’ll realize that a credit card has a more favorable interest rate than a payday loan. You’ll pay less interest on the advance and less processing fees.
3. Ask a Local Credit Union
A credit union is usually the best bet in obtaining short-term emergency loans. Credit unions will offer you a loan even with a bad credit score. The interest rate on loan from a credit union is not as high as that from payday loan lenders.
4. Borrow from a Family Member in Writing
If you’re in a dire financial situation, talk to a family member to lend you some money. Encourage them to have a written agreement and to make it legally binding. A loan based on trust will most likely damage the relationship between you two.
Transferring your financial burden to a family member albeit temporarily is never a good idea. Having a legally binding agreement will prove your seriousness in repaying the money borrowed.
5. Seek Advice
Talking about your financial problems can be embarrassing. Nevertheless, seeking advice can help you get out of your financial problem. If you find a financial advisor to talk to, they might have a ton of good ideas to help you out.
At one time or another, you’ll require a payday loan. You might be afflicted with a financial emergency that calls for some extra cash to handle. When this happens, your best option would be to find payday loan lenders.
Before you sign up for any payday loan, there are various factors you need to consider. Check how genuine the lender is and if they’re licensed. Their rates and charges on the loans can also tell if they’re out to exploit you.
A genuine lender should make it easy for you to obtain a loan. This means that they’ll have an online presence and provide reliable customer service. The rates they charge you will also be within the law limits.
Once you’ve found a payday loan lender you can work with, remember to keep your loans manageable. First, make sure you only borrow what you need regardless of what is offered. If you have an excellent credit rating, it’s very easy to get tempted to apply for many loans.
A lender may also allow you to defer payments. While this may sound attractive, you’ll end up paying more on the loan. Overall, choose a lender who understands you and is out to help your financial situation, not to exploit you.
Do you want to learn more about payday loans? Be sure to reach out to our customer support. Here are some other articles you might find helpful:
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Installment loans vs payday loans – what’s the difference?