Sunday, August 06, 2006

Read This First When You Apply Payday Loan

Are you planning to get a payday loan? Have you shopped around? Do you really think you will not get any surprises?

Well, even though you have shopped around and do all kind of analysis there are several things for you to consider when you want to get a payday loan. By considering these things, you prepare yourself to expect the unexpected. You might save yourself a bunch of cash. Below are several things you have to consider before you shop around for a payday loan.

1. Do you really need a payday loan?
I know you need the money. However, do you really need to have a payday loan? There are several ways for you to get similar amount of money without taking any payday loan. Call your families and explain your situation to them. Sometimes, you even do not need to pay it back. Hey! They are your families. Ask your boss whether you can get a part of your paycheck in advance. This is more likely to be done, when you know the boss in person. Ask help from your credit union or any organization that you are involved with. DonĀ“t forget that you also have friends you can ask for help.

2. Borrow the amount you can pay.
This might seem obvious, but most people who take payday loan borrow money for the amount that they want to. You need to borrow the amount you can pay, not you want. If you later on can not pay the loan, you are faced with two problems. The first is the excessive fees of the payday loan. If you roll over the loan you may be charged several fees such as roll over fee, lateness fee, and other fees that will soon piling up. If you are not careful, you may be trapped in this fierce payday loan debt. Secondly, you will have a bad payday loan rating. Although this is quite different from your normal credit rating, many payday loan lenders record your behavior and share it.

3. Apply a payday loan one at a time.
This is also because your record is shared between lenders. If they see that you apply to multiple lenders, they may think you are one of the scammers and reject all of your application.

4. Do not select lender with strict criteria
Again, this is because your record is shared in consumer tracking database. Different lenders have different criteria. If you are rejected by lender with strict criteria, you may also get rejected when you later apply to lender with more relaxed criteria.

Those are four things that you need to pay attention to when you want to shop around for payday loan. What is next? Read our guide on how to shop around for payday loan.

The general information provided by is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
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