Payday Loans

Looking For A Low Fee Payday Loan? Keep These 6 Things In Mind

It is generally very difficult to find a low fee payday loan, as most lenders charge an extremely high rate of interest. That is the reason why it is often recommended not to borrow such loans. In fact, it is not just high cost of the loan that is a problem; even other provisions of payday lending are so unfairly designed that most borrowers eventually end up getting trapped into a vicious cycle of debt. Despite all these facts, you may still sometimes come across a situation, where you need instant cash urgently and you have no better alternatives. In such cases, where you must borrow a payday cash advance, you must keep in mind the following things and act accordingly.

Borrow Only As Much As You Need

Since you have to pay a large amount of interest on every single penny you borrow, you are strongly recommended never to borrow more than what you need. Though it will not exactly be a low fee payday loan, you will at least be able to save a lot of money that you would otherwise have to spend for borrowing a larger sum of money. The lower amount of money you borrow, the lower its cost will be.

Compare The Rates With The Legal Limit Allowed In Your State

Every state in the United States of America now has enacted certain payday loan laws, which you must be well aware of. As part of these laws, certain maximum limits have been imposed on the rate of Interest and additional fees that lenders can charge, amount of loan, number of loan accounts that can be issued to a single borrower at a time and the repayment period. It is also very important for you to keep in mind that sixteen states have even imposed a low-rate cap, which means cash advances may be issued by certain licensed lenders, but they must charge a very amount of fee. In most of those states, where extremely high rates are banned, the interest rate on any type of loan must not exceed 30% per annum. Overall, you have to make sure that the lenders you are researching about abide by your state laws thoroughly. A thorough research will help you find the best deal in low fee payday loan.

Get References From People You Trust

Another practical way to find information about payday loan companies that charge a low fee on their cash advances is by asking for references from people you trust, such as your friends, family members and colleagues. If they have already borrowed a payday cash advance in past, they will be able to share their experiences with you, which will eventually help you make an informed decision on which lenders you should consider and which ones you should avoid. But, it is very important for you to keep in mind that many lenders are even running referral programs, where they offer commission to people who refer potential borrowers to them. Therefore, you have to be very careful; it is very much likely that someone is recommending you a payday loan company just because they want to earn their commission by making a successful referral.

Make Sure You Understand The Terms Thoroughly

Many lenders try to attract you by claiming that they charge only 30% as interest, but they intentionally skip to mention that this rate is charged weekly, not yearly. With this rate, you will have to pay back over $160 for every $100 of loan you borrow. Therefore, you are advised to read the fine prints thoroughly before you sign it. As per the laws, it is legally mandatory for all lenders to disclose all the terms and conditions about the loan clearly through a written loan contract. They must include at least a disclosure box somewhere in the contract, where ‘hidden’ provisions must be explained. Make sure you study this disclosure box properly. This box will get you the correct picture on whether the interest rate quoted by the lender is charged weekly, monthly or annually. A thorough research like this will prove to be a great help for you in finding a genuinely low fee payday loan.

First Time Borrowers

A latest trend is that lenders try to attract first time borrowers by offering them payday cash advances at very low cost; in fact, if you are lucky enough, you can even find lenders you will be more than willing to offer you a free payday loan. However, in most cases, even a free loan is not exactly free; you are still charged a considerable sum of money in terms of various processing charges and the like. Still, if it is the first time you are looking out for a cash advance from payday lenders, you must not forget to ask them if they have any special discounted offer for you.

Check The Privacy Policy Of The Lender

In order to protect yourself against the risks of fraud, you are also advised to check the reputation and past history of the lenders in question thoroughly before you sign up with any of them. Never forget to read their privacy policy. Besides that, it is also important for you to keep in mind that many unscrupulous lenders try to offer you an unbelievably low fee payday loan over phone. They do not even ask you to fill up application forms. They ask you to provide all the details through phone and even the approval comes within a few minutes then and there. Many borrowers who urgently need instant cash often get caught in their trap and they provide even the most confidential details about their personal and financial life to those lenders on phone. You are strongly recommended never to provide private details, such as your social security number, credit card information or bank account number and password to any lender no matter how lucrative deal they are offering. If you come across any lender that asks for such confidential pieces of information, you should treat it as a huge red flag.

Always remember, even a low fee payday loan can turn out to be extremely costly for you if you fail to repay the same on its set due date. Therefore, you must also make sure much in advance that you can practically afford to make timely repayment. Never borrow a payday loan if you know that you cannot meet the scheduled due date.

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Posted in Payday Loan Companies | 1 Comment »

One Response to “Looking For A Low Fee Payday Loan? Keep These 6 Things In Mind”

  1. Scott says:

    Pay day loans comes with a lot of exciting offers, these offers give a deep impact upon the person who is actually in need of some instant money. But pay day loans are such loans can be taken upon a very high rate of interest, that’s why it is not advisable to take such loans. There may be some other options available which can provide you money and that too at a very reasonable rate of interest. You can try to borrow some money from your relatives or other friends if the last option is to borrow a pay day loan then you have to choose the best option for you like you can get some good names from your friends who have already used the company. You must have taken the minimum amount you need to get out from your problems, never try to borrow money more than you actually need. Some companies promise to provide lot of facilities but at the time of delivery they provide some thing different so it is also very important to study all the terms carefully before signing the contract. Every state has its own rules ad conditions regarding the maximum limit of money the lenders can offer to its customers.

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