Choosing Payday Loan Lenders
There are numerous payday loan lenders nowadays. It is important to choose one that is reputable. Find out about the company’s practices and their policies before applying for a loan.
Payday cash advances are the easiest and fastest way for you to have financial aid even if you do not apply for bank loans or credit card accounts. The process is speedy that you can be approved of your loan in as fast as 30 minutes. You have the option to avail of small to large amounts of money ranging from $100 to $1000 or even more. The requirements needed are just minimal, such as your ID, utility bills, proof of residence or residential sketch, and employment contract or business permit to prove that you have a stable source of monthly income. If you have all these, then your application will most likely be approved.
What to Look Out For in a Payday Lender
But in this case, it is not only you who need to conform to their requirements. In return, you also have to investigate whether the lending companies are worth your time and payment. Read on to know about the factors you need to consider when choosing a payday lender.
- Interest rate
The interest rate is crucial in your decision as to what lending company you will choose for your loan. Most payday loan companies charge 200% interest rate as their safety net. This is completely understandable because this type of loan is high-risk and they have no gain if the borrower opts to run away from the obligation, since they cannot pursue a lawsuit. But if you are lucky enough, you will find lending companies offering payday cash advances that impose 25% to 75% interest rates. This is very particular for starting companies that are just beginning to build their client base. Take advantage of this opportunity and although it is bad for your credit standing to transfer to different lenders from time to time, your goal should be to make the most ideal deal for you.
- Hidden charges
Hidden charges are typical for lending companies because it is also their source of income and their way to get a portion of their return of investment. Beware of companies with lots of hidden charges like filing fees, notary charges, taxes, and others that will top your total amount of loan plus interest rates. This is completely risky for you because instead of having the chance to pay the loan in full with the money that you have, rest assured you will still have remaining balance that is subject to penalty if not paid in a timely manner.
- Customer service satisfaction
When you are applying for a loan, it does not necessarily mean that you are inferior to those who have no need to apply for financing. Applying for loans should not be degrading and this is not something that the lending company’s customer service should make you feel. Therefore, choose a company that knows how to take care of their current and potential clients. Choose a company that realizes its client’s worth and how to make deals with you according to your needs and capabilities. When you do, then you are somehow assured that you are in good hands.