Posts Tagged ‘how to compare payday loans’

How To Compare The Various Options For Loans To Payday?

Loans to payday require you to make the repayment on the next pay day when you get your salary. People often look for it to meet some small yet urgent financial requirements. Though it is not very difficult to obtain such loans, there are several important factors that must be taken into account. There are obviously certain eligibility criteria, but that is not the only thing that requires your attention. The more important thing is to have a clear idea about the various options that you may have to obtain a small, short-term loan till pay day.

Always remember, payday lenders are not the only ones who offer loans to payday. You can get such loans even from conventional lenders, such as a bank or a credit Union. In fact, you can get such loans even from your employer or directly from a service provider. However, there are certain pros and cons associated with all these options. Therefore, before you finally choose an option to go for, make sure you thoroughly understand both the positive as well as the negative aspects associated with it.

Attractive Instant Loans Offered By Payday Lenders

In the first look, you may feel that the most attractive offers for loans to payday come from payday lenders. As compared to other options, they promise the quickest approval for your loan. Other features that get them an edge include very simple qualifying criteria and minimum or no paperwork at all. Besides that, once your loan is approved, the lender transfers the fund directly into your bank account. This way, you can get access

to the much needed money within just one to two business days. All these pros are so much attractive that people often overlook the cons. The cons include extremely high cost of loan (you can be charged over $30 for every $100 of loan you borrow for fourteen days), automatic rollover of loan (once you miss the due date) and the rapid consistent increase in the outstanding debt because of recurring penalty and high interest rate. Even if you are okay with the high cost and are confident that you can avoid the penalty by paying the loan off on the scheduled due date, you are still advised to look into other options; you might come across a better, more affordable and safer alternative.

Unsecured Personal Loans Offered By Banks And Credit Unions

Conventionally, obtaining a personal loan from a bank or credit unions requires you to go through lots of formalities and paperwork. In general, it takes at least one week before you can get to know whether your application has been approved or rejected. What gives these unsecured personal loans an edge over loans to payday is that they are safer and cheaper. In fact, with the growing competition in the market because of the presence of payday loan companies, many credit unions and banks are also coming up with attractive offers, especially for their regular customers. Therefore, you are advised to contact your bank, especially the one that manages your checking account. You might get a quick approval loan with more affordable terms and conditions.

Cash Advance Using Your Credit Card

Another option is to get an advance using your credit card. Though this option is also not generally recommended, but if you compare the drawbacks of loans to payday and those of credit card advances, you will find the later much safer and more affordable. The rates that credit cards charge are also very high, but they are significantly very low as compared to the rates charged by payday lenders. However, the rollover thing is applicable with this option also; the outstanding debt balance multiplies itself very fast with every passing day until you pay off the balance completely.

Getting Your Salary In Advance From Your Employer

If you have been a loyal employee with a clean and impressive performance record, you can request your employer for an advance from your salary. In many cases, this options turns out to be the safest and cheapest one. Your employer might even be generous enough to allow you to repay in small installments over a certain number of months, which will eventually make things far much easier for you.

Take Advantage Of Your Long-Term Relationships With Service Providers

There is one more option that many people often do not even think about. If you have been a regular customer of certain service providers and you need money to pay them only, you can request them to provide the services now and wait for their payments until you get your salary. For example, if you need money for your car repair and you always go to the same automobile repair agency, you can try this option there. The market in almost every business field is very competitive and every business wants to keep their customers satisfied and happy so that they can continue using their services in future also. If you have been a regular customer, this option is very much likely to work for you.

Do not listen to your temptations. Instead, use your wisdom, compare all the option for loans to payday and then make a financially healthy decision for yourself.


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