Payday Loans

Four Things To Consider Before Signing Up With A No-Doc Payday Loan Company

If you are considering borrowing short-term cash advance with a no-doc payday loan company, there are several things that you need to take into your careful consideration. It is not very difficult to find such companies. Just try searching it on Google and you will be bombarded with thousands of alluring search results. These types of payday lenders try to attract customers by offering short-term loans of small amount without any paperwork. That is the reason why these lending programs are popular with several other terms also, such as faxless payday loans, paperless payday loans, and others. Though the deal looks quite wonderful (as it offers instant loans without any hassle), you have to be very careful because most of such companies either are not genuine ones or charge extremely high rate of interest. Following is a brief rundown on Four crucial factors that you must take into account before you sign up with one.

Interest Rate

When it comes to choosing the best no-doc payday loan company, the very first thing that you have to look into is the rate of interest they charge on short-term cash advances. Many unscrupulous companies are charging over $60 per $100 of loan issued for as short a repayment period as just fourteen days. Unfortunately, there are many “desperate” (desperate because they want instant money anyhow) consumers who are borrowing those loans even when they are aware how costly it is going to be when it is time for the repayment. Those consumers are also often the ones who fail to repay the loan on the set due date and are thus forced to borrow another payday loan to repay the previous one, and the cycle continues till they become bankrupt. Luckily, many states have now made specific payday loan laws limiting the rate of interest. Make sure you are aware of the laws applicable in your state. If you find that the interest rate is unusually very high, you should consider trying some better alternatives like borrowing from credit unions or traditional banks. The wait period may be a little longer when it comes to approval for conventional loans, it may still be a more affordable option. Take your time to decide what is reasonable and what is not.

Loan Terms (Rollovers, Repayment, Penalty Charges)

The next important thing to look into before signing up with a no-doc payday loan company is the basic terms and conditions of the loans. Focus mainly on the calluses that describe the provisions regarding repayment, such as late fees, NSF fee, penalty charges, rollovers, and others. Do not sign the contract if it says your loans will be renewed if you fail to make the repayment on the set due date. Renewal of loans means you will be liable to pay interest for one more month, which can be an overwhelming amount due to the high APR. Find out if there are any prepayment penalties?

Rules And Regulations (Are They Following The State And Federal Laws?)

You must read the fine prints thoroughly in order to make sure that the company you are considering borrowing a payday loan from is not violating the state laws. If you notice any violation, you must file a complaint immediately against them with the state authority. You may be surprised (shocked) to know that many lenders (specifically the ones that run their business from Internet) are not even licensed to issue such loan in many states.

Trustworthiness And Reputation

If you find that every thing is alright and even the rate of interest is not very high, you must make sure that the no-doc payday loan company you are signing up with is trustworthy and highly reputable. Do not forget to check their past records with the agencies like the Better business Bureau. If there have been lots of consumer complaints against a specific company, it is obviously a big warning sign.

Overall, though it is not at all recommended to borrow payday loans, you may still like to go for it if you are fortunate enough to find a truly no-doc payday loan company who charges a truly “reasonable” (if not ‘very low’) interest rate. Make sure you do your research thoroughly before signing any contract.

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Posted in Payday Loan Companies, Payday Loans | 1 Comment »

One Response to “Four Things To Consider Before Signing Up With A No-Doc Payday Loan Company”

  1. Macc says:

    A No-Doc payday loan company can provide you instant cash in your need but you have to be very careful in the selection of such companies. The search of a genuine and legitimate company is not a very difficult task to achieve but it must have done very carefully. When you need some urgent or instant money and you do not have the time to go and apply for another loan,. You find yourself with no other option available then payday loan appears like a miracle for you. Though these loans come with a very high rate of interest , yet these are very popular due to easy availability and no need of paper work or any another proofs. If you are going to sign with No-Doc pay day Loan Company, you have to consider some important facts like there should be no roll-overs or heft penalty charges. The repayment plan should be clear to you. You must clear your doubts before you sign the contract. The company must have a license of providing their services in your particular state. If you are going to deal with an internet based company, then, you have to take a little bit of extra care.

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