Online Payday Loan CompaniesThe Top 5 Factors to Consider

By: Michael Tagnani
Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-qformat:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin-top:0in;mso-para-margin-right:0in;mso-para-margin-bottom:10.0pt;mso-para-margin-left:0in;line-height:115%;mso-pagination:widow-orphan;font-size:11.0pt;font-family:"Calibri","sans-serif";mso-ascii-font-family:Calibri;mso-ascii-theme-font:minor-latin;mso-hansi-font-family:Calibri;mso-hansi-theme-font:minor-latin;}

There are many, many online payday loan companies tochoose from, so where does one begin when looking for a payday loan? A bad ideais to Google ‘payday loan’ then close your eyes and pick a spot on yourcomputer screen. A good idea is to begin by understanding the payday loanprocess.

A payday loan is a short term loan with less stringentrequirements than traditional, long term loans. They are usually offered withno credit check, no upfront fees, and no down payment. In addition, in mostcases, the loan money is available to you within 24 hours.

It’s easy to be tempted when being offered quick cash.However, before deciding whether to take out a payday loan you must be surethat you are capable of repaying the amount you intend to borrow. Sure, you maywant $1500, but can you afford to pay $1500 on your next payday, plus a lendersfee?

When you encounter an urgent money situation and you’reconfident that you’re capable of responsibly handling a payday loan, it’simportant to consider your options. This may take a little time and research.With so many lenders available, this is time well spent for the hassles yousave yourself from down the road.

The top 5 factorsyou should consider when looking for an online payday loan company are:

1.????? Loan Rates. Online payday loan ratesvary tremendously from company to company. While some payday loan companieswill charge an affordable and flat rate of 15%, others may charge as high as 50%.

Avoid any payday loan companythat does not clearly disclose their rates. If they are unwilling to disclosethe loan rate amount to you until you are ready to commit to a loan agreement, beware– these are the companies that often charge hidden fees. When doing yourresearch, keep a calculator nearby, so you can see the actual dollar amount youwill be charged based on the loan amount you need.

2.????? Loan Terms. The terms of the loanshould be considered before choosing a lender. Many payday loan companiesrequire that you repay in full on your next pay date. Others may automaticallyextend your loan from pay date to pay date unless you indicate you want to paythe balance in full.

If you go with a company whooperates using automatic extensions, you must factor in the additional feesthat you will be required to pay if you do not pay in full on your original duedate. Also consider the costs for companies that offer loan extensions on per requestbasis. You should know that even though it may be tempting to extend your loandue date, it may not always the smartest thing.

3.????? Rules & Regulations. Although therules may vary from one payday loan company to the next, they are all governedby state and federal laws. Although there is usually no credit check toqualify, there are expectations with some companies.

You should know whether or notyou are capable of meeting the payday loan company’s guidelines before youapply. Though most don’t, some companies require a deposit to receive a paydayloan, and others do run a credit check.

4.????? Trustworthiness. You should be leery ofa payday loan company whose standards are too low. If a company has standardsthat are too loose it speaks to their trustworthiness. A company that willapprove you without any documentation or at least some form of proof of your abilityto repay the loan (i.e., a bank statement or a pay stub) is not a verytrustworthy company.

Like any lender, the payday loancompany you choose should have certain guidelines and a verification process.Companies that don’t are sometimes operating outside of the law or running somekind of scam to get your bank account information.

Predatory lenders will oftenencourage an applicant to apply for the maximum loan amount. As tempting as itcan be, it is financially irresponsible to borrow more money than you canafford to repay. These companies make most of their income off of the additionalfees they can charge when your loan is not paid in full per the agreed upon terms.

5.????? Customer Service. The customer service acompany offers is of obvious importance. This is where you will be able toreally narrow down your list of possible payday loan companies. When doing yourresearch, call the companies and ask some questions.

The company you choose should beopen, honest, willing to answer your questions, and happy to assist you. Youshould be pleased with the way you’re treated by the company representativesand your ability to contact them, if needed. Beware of lenders that do not havea phone number where you can reach them.

Everyone encounters financial emergencies at one time oranother. Sometimes, we simply don’t have the money required to resolve it. Apayday loan can be a good solution under these circumstances, but only if youact responsibly. Start by only borrowing an amount you know you can repay andthen making an educated decision when choosing your lender. Taking into accountthe company’s loan rates, terms, rules and regulations, trustworthinessBusiness Management Articles, andcustomer service will give you clear picture of who you will be dealing with. Usinga good payday loan company and promptly repaying your loan is the quickest wayto get your situation back on track.

Most Read Articles On
"Payday Loans"
Payday Loans
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Payday Loans
 



Share this article :
Click to see more related articles