Financial Resource

Payday loans are today’s answer to short-term money problems. Unlike credit cards, they don’t have lingering balances and mounting finance charges. In addition, they are a practical alternative to financial crises and outrageous banking fees.

But do you understand everything you need to know about payday loans? Here are your five most common payday loan questions answered:

1.    Where can I find a payday lender?

You can find a payday lender through a bricks and mortar store, through the Yellow Pages or on the Internet. The technology of the Internet has allowed payday lenders to offer payday loans online, with easy online applications and minimal approval time. In fact, you can find a payday lender on the Internet, fill out the application, and receive your cash in just a few hours if you use an online payday lender.

2.    How much should a payday loan cost?

Payday loan costs vary from company to company and state to state. Most states in the country have different rules and regulations regarding payday loans, so it is best to check to see what regulations your state has imposed on payday loans. Even with the regulations, the interest rates and fees can vary widely between payday lenders, so it is always important to shop around to ensure that you are getting the most competitive deal on your payday loan.

3.    How do I know if the payday lender is reputable?

Because online payday loans have become so popular in the last few years, there are many companies that are looking to scam innocent people.  Due to the strict regulations in this country regarding payday loans, many of the scams and outrageous fees come from payday lenders that operate outside of the country. It is therefore crucial that you pay close attention to the location of the payday lender and ensure there is appropriate contact information, including a telephone number, for the payday lender before you apply for a payday loan.

4.    What can I use a payday loan for?

You are free to use your payday advance for nearly anything you choose. Some people use payday loans for living expenses between paychecks, while others use payday loans when a financial emergency occurs. The bottom line is that it is your choice to use your payday loan for whatever you need. From car repairs and gas bills to groceries and household repairs, the choice is yours when it comes to payday loans.

5.    Do I need good credit to secure a payday loan?

One of the biggest benefits about securing a payday loan is that it requires no credit check. Instead, this type of short-term loan is secured through your paycheck and is therefore paid back when you receive your next paycheck. Payday loans are quite unique when it comes to short-term loans, as they are repaid much quicker. Generally, payday loans are typically paid back within a few weeks of receiving the money, although this varies according to your pay schedules.

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