Payday loan companies advertise as an easy way to get quick funds when you need them most. But, before taking out a payday loan, research your repayment options. Repayment plans will vary depending on the lenders and the borrower’s financial situation. For example, someone who is down on their luck may be able to extend the terms of their repayments over a longer period than someone who has a steady income but hasn’t budgeted for emergencies. A good rule of thumb is to avoid payday loans altogether.
Many people are unaware that the best payday loans for real money can be found by searching any major search engine. Some of these companies have incredibly high-interest rates. For example, an APR of 389% is typical in states such as California and Maryland. Remember: payday loan companies typically never need to verify your financial status or your ability to repay them, which means they can make impossible demands, or you could find it difficult in the future to get a loan from this company again.
Payday lenders rarely review your credit before deciding whether or not to offer you a loan. Doing so would be a cost to them, so they don’t. They will only do this if asked to by the credit-reporting agencies.
You will eventually be in debt to the payday lender in the form of interest and fees you cannot escape. They will only add more fees and interest if you don’t pay your bill when it is due. These companies can charge as much as $39 per $100 borrowed, which adds up quickly.
Due to these high costs, these loans are intended for people who need minimal money for emergencies. Always seek other methods of borrowing before considering a payday loan as an option.