Direct Payday Loan Lenders: Best Practices Are Cost Effective
If you are going into a short-term loan blindly, in other words, you have no idea what to expect, take precautions to expect the unexpected. Not every direct lender offers great prices; in fact, not every lender works with best lending practices. It is crucial to any new applicant that they check out a few lenders before sending in an application. Even if doing so only saves you an application fee, your finances will be thankful for it later.
Don't get scared about the large APR%. All lenders must convey to their applicants the interest rate percentages that would be charged if they extend a direct payday loan for more than a year. Here's why you shouldn't be scared by this figure... if you are planning on keeping a few hundred dollar loan out for more than a year, you might want to come up with a better plan of action. An average loan is set for a two week payoff with an average interest fee of $30 per $100. Some lenders charge more, others charge less, but if you make any late payments during the time your loan is out, you can expect to see NSF charges accrue. Don't forget any charge your bank may inflict on your account. As with any type of debt, the longer it remains unpaid, the better chance there is of something going wrong. Take note of the APR listed and mover forward to getting your finances back on track in under a year.
Read through the webpage carefully. Call the direct lender with any concerns you may have. Ask about any undisclosed costs which are not listed on the website, including if there is an application fee. Your money is already tight, refuse to work with a lender who charges to look at your application. This fee is no guarantee that your application will be approved. Take your business elsewhere. The last thing you want to do is spend any extra money for a solution to your financial problem.
If the only alternative money option available to you happens to be quick cash from an online payday lender, then make it work for you in the most cost effective way that you can. Understand the short-term loan process and find a lender with the best rates and practices. Make a plan to pay the loan off as soon as possible and you won't have to worry about the APR.