A payday loan is far from a home mortgage, but before you get any type of loan, the first thing that should pop into your head is “Can I afford it?” It may be comparing apples to oranges, but a fruit is a fruit and a loan is a loan. You can eat both fruits and you have to pay back each loan. How well you have been preserving your credit will certainly be a factor for many types of bank loans, but an online payday loan cares more about how well you run your bank account.
The banks and credit unions will spend some time searching out your credit history in order to approve you for the home mortgage or car loan. Any negative mark on your credit history will be a factor lessening your chance for approval. Before you go into the bank asking for a loan, stop and ask yourself:
- How have I handled my past loans?
- Am I current with all my bills?
- Have I had any late payments in the last year?
- Do I have any old debt in collections?
- Will I be able to fit a new loan payment into my budget?
- What is the maximum payment which my budget can afford comfortably?
- Do I have any money to make a down payment?
- Is this loan the best decision for my life right now?
Think before applying for online payday loans:
- Do I really need this loan?
- Will my next paycheck cover both the loan and the fees?
- Can I afford to drag the loan payment long-term?
- What is the least amount I could ask for?
- Do I have other payday loans out?
- Do I have another source for quick cash?
No matter what, the bank loan and the online payday loan will need to be paid back. Each have their own terms and policies, but they are generally the same. Due dates will be set and you will be expected to follow through with payment. If you choose to not pay, you will have people calling you to collect on your promise. Yes, signing the loan contract is your promise to pay the money back. Short-term payday loans should be paid off in just a few short weeks. and leaves little room for error on your part. Many people who use low cost payday loans take advantage of their easy access and little aftermath once they are paid in full. Some people just do not like debt hanging around too long.
Large loans like car loans and home mortgages will take a lot longer to pay back. Since the payments will last years and even decades, you want to be certain that it is an amount which will be easily handled. The foreclosure problems of our economy are from people getting loans for high priced homes leaving them strapped with high monthly payments, couple that with a variable interest rate, home mortgage payments suffered. People lost their homes.
Low cost payday loan payments or your home mortgage, check out your finances before you sign for the loan. Once the money is yours, the countdown to payoff begins.
