Guide to the Best Payday Loans Online | 7 Ways to Find the Best Online Payday Loans
When they need money in a hurry, most people will begin to consider payday loans. Borrowing money through instant payday loans that promise great rates and flexible payment options might sound like the perfect solution to your financial woes.
But do you know how to decipher the difference between the best payday loans and a scam?
Getting the best deal with payday loans online doesn’t require a lot of headache or legwork on your part. Knowing a few simple steps to find easy payday loans can save you a lot of money in the long-term.
AdvisoryHQ can understand the need for a payday advance on occasion, so we want to assist you in uncovering the secrets of great payday loans and help you find the best payday loan sites.
What do you need to know about payday loans? Take a few minutes to read over these tips for finding cheap payday loans that will take care of what you need right now.
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Understand the Basics
Before you can truly understand tips for finding the best payday loans, it’s critical to have a thorough understanding of exactly what payday loans are. Companies are constantly advertising easy payday loans, claiming to be the best payday loan sites and the best personal loan lenders. What does that really mean?
Image Source: Payday Loans
Payday loans are short-term loans issued by a company and secured by a personal check and an additional fee for borrowing the money. In exchange for the personal check, online payday loans and physical locations alike will issue a check for the approved amount.
On the agreed upon date (usually the date of the next paycheck), the company cashes the personal check from the customer to collect their fees.
To sum it all up, customers are paying large chunks of interest for borrowing the money and the companies make a large profit from the borrowing fee on these payday loans. The Federal Trade Commission refers to payday loans as a form of “very expensive credit.” In their example, every two weeks’ worth of financing on a payday advance results in an additional $15 borrowing fee on a $100 loan. Over the course of a year, if you continue to roll the loan, you will be paying an APR of 391 percent.
The Consumer Federal Trade Commission recommends making use of other resources first before utilizing payday loans online or in-person whenever possible. Consumers might consider taking a small personal loan from a credit union or company, withdrawing a cash advance on a credit card, or taking out a credit card with a low APR.
They also encourage consumers to take charge of their everyday finances by contacting credit counseling services and forming realistic budgets to plan for emergencies in lieu of using payday loans.
However, should you find yourself in need of instant payday loans, keep reading for the top tips to ensure that you receive the best deal.
Compare Interest Rates
As with any loan, the Truth in Lending Act requires payday loans to come with an array of documentation to accurately record the real cost of the loan.
A company may advertise cheap payday loans, but you will find out soon enough if it isn’t true. Lenders are required to disclose the finance charge and the annual percentage rate (APR) in writing before you close on any payday loans, online or otherwise. Pay careful attention to these numbers in writing so that there are no surprises when it comes time to repay your “cheap payday loans.”
Take this written information regarding the APR of your loan and the financing fees so you can compare the numbers with other companies offering payday loans online. It’s always worthwhile to make sure that you weigh all of the possible options before assuming responsibility for any type of loan, especially payday loans online.
It should be quick and easy for you to check the potential interest rates with several companies before making a commitment, particularly if you are searching for payday loans online.
By knowing what the average rates are for online payday loans at the time you’re interested in borrowing, you can easily identify which lenders are offering a great deal and which are overcharging for their services. It should take no more than a few minutes to browse the best payday loan sites to see what they are charging for instant payday loans.
While you’re comparing rates, you should also check to ensure that there are no prepayment fees associated with a lender’s online payday loans. Prepayment fees keep you locked into your payday loans, even if you have the ability to pay them back early, in order to ensure that the lender receives the maximum amount of interest.
This is often a clause in the fine print that can add up to additional fees and rates that you weren’t expecting.
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Read the Fine Print
Payday loans can be fraught with fine print in their terms and conditions, making it a challenge to understand exactly how the loans will work sometimes. Before you sign on the dotted line, ensure that you have read every detail in this sometimes lengthy section of your loan agreement.
Occasionally, lenders will hide additional fees and surcharges in the terms and conditions section of their loan paperwork. These disguised fees could be uncovered with a thorough read through each and every document from the lender that requires your signature at the bottom of the page.
Experts claim that the additional fees included in the fine print on easy payday loans can sometimes add up to ten times more than what you would expect to pay on consumer loans. The best payday loans will not have any disguised or hidden fees woven into their contracts.
Pay close attention to the terms and conditions listed on a lender’s website. If it is unavailable on their website, be sure to call their customer service department and request a copy for review, if possible.
It is a fairly efficient way to distinguish which companies are worth your time and which ones are not prior to becoming overly involved with the company’s marketing, approval process, or pressuring tactics to ensure that you sign with them for their online payday loans.
Notice the Privacy Policy
Oftentimes, we skim through a company’s privacy policy without so much as a second glance. Similar to the terms and conditions in the section above, online payday loans require you to pay strict attention to the details located within the privacy policy. You need to keep an eye out for privacy policies that have any information that causes you to raise your eyebrows.
When applying for quick payday loans, it’s necessary for you to enter sensitive personal information for the lender’s approval. Protect your data by ensuring that your sensitive information won’t be sold to third-party vendors in exchange for your same-day payday loans or instant payday loans.
The privacy policy may not be the most interesting read, but it’s worth a thorough read, especially if it saves you from the hassle of having other parties privy to your private information. Quick payday loans aren’t worth having your information farmed out to other companies in exchange for a few hundred dollars.
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Know your Credit Score and History
As with any loan, your approval is subject to the guidelines and requirements set out by that particular lender. Often, even with payday loans online, one of the largest contributing factors (depending on the lender) could be your credit score. Do you know where your FICO credit score stands or what is on your credit report?
If you utilize payday loans on a regular basis, it is essential that you know what your credit score is and how to improve upon it if necessary.
First and foremost, you can view free copies of your credit report each year through annualcreditreport.com. This is important for your financial health no matter what, as it allows you to ensure that everything on your credit report is accurate and current.
Websites like Credit Karma can give you an idea of what your credit score is based on the VantageScore, which is slightly different than the FICO score that most payday loans will be looking at.
After providing you with a score, they often provide you with suggestions and recommendations for products that can help you improve your credit score. A higher credit score could result in more favorable terms or rates with payday loans online.
Image Source: CreditKarma.com
Not to mention that knowing and understanding your credit score helps you to evaluate which sites will offer you instant payday loans or a payday advance. While some online payday loans specialize in individuals who have no credit history or a poor credit score, others cater more to customers who have higher scores.
If you can apply for payday loans through a lender that offers better terms for higher credit scores, it would be in your best interest and help you to find the best payday loans around.
Alternatively, if your credit score and history can improve drastically, it may put you in a position where you could achieve a personal loan that would be far better than payday loans. You may have more options available based on the state of your credit score if the number were to improve.
Compare Online Reviews
As consumers, we have been conditioned to read reviews of products online before we make large purchases. The same holds true for online payday loans. Especially if you were interested in obtaining quick payday loans through the internet, you should be certain to read the reviews of all the companies you’re considering before moving forward.
Through the reviews, you may find that one company for same-day payday loans often doesn’t fund them in the time they advertise.
You may find that the application process is lengthy or they are pickier than they let on about which customers they will approve. The reviews may also indicate tricky wording in their terms and conditions or privacy policy, negating the need to read them in great detail for yourself.
Alternatively, you may find that one company for online payday loans does a stellar job with their customer service. It may come out that one particular company is a clear fit for your needs when it comes to payday loans.
It is impossible to negate the benefits of researching the reviews for same-day payday loans or any sort of payday advance.
If you stumble upon a lender where the reviews are scant, it would probably be in your best interest to consider a different, more well-established company with a clear history of issuing great payday loans. In order to get the best payday loans, it’s imperative that you select a company that has a history of providing excellent service to their customers.
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Find the Best Personal Loan Lenders
If you are looking to obtain payday loans online, the best thing to do is to consider companies that already have an excellent reputation.
With so many online payday loans out there, it is critical to find a company that offers quick and easy payday loans with good legal standing. If the company that issues your instant payday loans ends up in legal trouble, it might not be the best situation for you either.
For the best payday loan sites, consider one of these options:
- Check ’n Go: This is one of the best payday loan sites because it has the potential to offer you the best of both worlds – online payday loans as well as an in-store option. Check ’n Go locations are all around the country for those who prefer local choices.
- CashAdvance.com: For short-term online payday loans, CashAdvance.com gives clients access to a host of the best payday loan sites. Similar to sites like Lending Tree but for payday loans online, CashAdvance.com pairs you up with potential lenders based on your application. You can apply for payday loans ranging from $100 to $999, depending on the lender that you are matched with.
Keep in mind that there are other companies that will issue online payday loans as well as those listed here. AdvisoryHQ could never produce an exhaustive list of all the possible options for payday loans online or for instant payday loans.
This list serves as a starting point with some of the best payday loan sites and best personal loan lenders available online with flexible borrowing terms, credit requirements, and quick approval and funding times.
Conclusion: Best Payday Loans Online
Applying for payday loans online can be a frustrating process as you weigh the approval times, funding times, and loan amounts that each lender will allow. Understanding the finer details of receiving payday loans can help you to make a wise and informed decision about which lender issues the best payday loans or what the best payday loan sites happen to be.
It takes time and patience to qualify all of the potential sources for payday loans online. Fortunately, by thoroughly reading through the fine print, privacy policy, and reviews, you will have a much more realistic idea of whether that company will work for your payday loans.
From there, it is only a matter of discovering which company can offer you the best rates based on your credit score and credit history.
Keep in mind that the Federal Trade Commission cautions consumers against the repetitive use of payday loans due to the high rates and fees associated with this short-term form of borrowing. While online payday loans may be necessary on occasion, you may need to find a different avenue for borrowing money if payday loans are a regular occurrence for you.
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