While you may see a dozen different commercials for a fast payday loan over the course of a day, there is a pretty good chance that you don’t have a full idea about what you get with a payday loan, or at least what it is comprised of. While you may see commercials from a payday loan provider showing good looking people getting the money that they need in a professional looking environment, the commercials that you see don’t really give you much more info. As with any financial situation you are going to find yourself in, you need to do a learn about a payday loan because you dive into it. To get you started, here are ten important bits of info that you need to know about payday loans:
1. They Deal In Limited Amounts Of Money
You don’t look for a payday advance loan online if you need thousands of dollars to buy a home or a car, you do it because you want to pay off a couple of bills. Most payday loans start at $50 and don’t go above $2500.
2. You Are Essentially Borrowing Your Own Money
The money that you receive from a payday loan is, essentially, an advance on your next paycheck. This means that the money you get is pretty much your own.
3. They Are Designed To Be Paid Back Quickly
Since the money is based off your paycheck, you are expected to pay said money back when your paycheck comes in. This means that the payment is going to be due rather quickly.
4. While There Is Less Risk, There Is Always Going To Be Risk
Taking out a small amount of money is always going to have less risk involved than borrowing a lot of money. With this said, there is going to be risk, and you need to know it before you go ahead with the loan.
5. Different Lenders Are Going To Have Different Fees
While rates may be around the same no matter which fast payday loan companies, fees and penalties are always going to different. This is one of the main reasons why it is always important to look at what your options are before you make a decision.
6. Late Payment Penalties Will Be High
Because you are borrowing “small” amounts of money, and the loans are designed to be paid back quickly, you will find that late payment penalties are going to be on the higher end.
7. There Are Plenty Of Online Lenders
You can get a direct payday loan from many lenders online, typically with the same great rates you’ll find at physical locations.
8. Lots Of Small Print That Needs To Be Read
Small print is always going to be present on legal forms. Make sure all of the small print is read.
9. Questions Should Always Be Answered
If you have any questions about the payday loan, or any of the small print, make sure you get the answer that you need before you go ahead with it.
10. Always Be Sure Before You Sign
Only sign on the dotted line if you are sure that you are going with the best payday advance loan that makes the most sense for you.
