Payday Loans

How To Compare Different Types Of Instant Cash Payday Loans?

Instant cash payday loans, as the term suggests, are very attractive lending programs that can help you borrow money instantly, within a matter of just a few hours. These types of loans seem to prove to be very helpful for those who are going through a cash crunch and have some urgent financial expenses to meet. But, there are a few things that are very important for you to keep in mind. For example, every state has certain specific payday loan laws that lenders must follow. Unfortunately, there are more illegal payday loan companies out there in the physical as well as the online market than you can imagine or count on your fingers. Therefore, you have to be very careful while you are choosing a lender to borrow from. Besides that, it is also important for you to keep in mind that despite the laws, many states still allow lenders to charge extremely high interest and finance charges on these loans. Therefore, once you shortlist a few legitimate, reputable lenders, you also have to compare the rates and other terms of the instant loan programs they offer. Following is a brief rundown on how to do it.

Know The Laws

Lenders that offer instant cash payday loans must follow state laws regarding the same. These laws have provided you certain legal rights as well. So, unless you are aware of those laws, you will not be able to make an informed decision in this regard. For example, you must be well aware of the maximum interest rate that is allowed in your state on these types of payday loans. There are also maximum legal limit on the amount of additional finance charges. Besides that, the laws also specifically mention whether rollovers are allowed in your state or not; if yes, how many times a loan account can be rolled over in case it is not paid in a timely manner. Most states strictly prohibit the provision of rollover or renewal of loan and instead make it mandatory for the lenders to allow those borrowers to pay in easy installments over a period of time as per an affordable repayment plan (no additional interest should be charged).

Can You Afford The Loan?

Even if you find that the instant cash payday loans offered by the lenders short listed by you abide by the laws applicable in your state, you still need to make sure whether you can practically afford these loans or not. You must understand how these programs work and whether you are financially capable plan to ensure timely repayment. Considering the very fact that the repayment period is not longer than just a couple of weeks, it is very important for you to do a serious budget planning and find out if you will be able to manage the extra cash needed to make the repayment on the set due date. The nonpayment of debt can push you into a serious debt trouble.

Borrowing Another Loan To Pay Off A Previous One

Just because instant cash payday loans are easy to qualify for and to get, many borrowers keep on borrowing new loans one after another. In most cases, they take the new loan to pay off a previous one. But, this practice can be very risky, as the actual outstanding debt keeps on growing fast and before you realize it, the situation is already out of control for you. This is when they start looking out for debt relief solutions like payday loan debt consolidation, pay day loan debt management, and others. Therefore, planning is crucial. You must avoid taking a new loan to pay off a previous one or taking multiple payday loans at the same time.

Last, but not the least, it is also important for you to keep in mind that the Fair lending Act requires all lenders to mention all the terms and conditions of the instant cash payday loans clearly in the contract papers. There must not be any hidden clauses. You are still recommended to do a thorough review of the fine prints before you sign it.


Custom Search

Tags:
Posted in Eligibility Criteria, Payday Loans | No Comments »

Leave a Reply

You must be logged in to post a comment.