A payday loan is a short term loan usually of between $100 and $1,000 that is designed to help people when they are between paydays and need the money temporarily to pay for some kind of financial emergency. Payday loans are also known as cash advance loan. People will frequently obtain a payday loan so that they can pay their financial emergency to prevent bad credit reports from being filed on their credit history or to prevent late fees. Much the same as any other loan, when you are obtaining a payday loan you want to find the best payday loan that is available. Here is how to find the best payday loan.
Because different payday loan lenders will charge different interest rates, you should contact many different payday loan lenders and have them quote their interest rate. In order to make sure that you are obtaining the very best interest rate for your payday loan, you need to be sure that you compare the different quotes for interest rates.
Don’t forget that there is more cost involved than simply interest. In addition to the interest that the payday loan is charging you, payday loans will usually carry other fees. When you are making loan comparisons, you should make sure that you ask the lender for a complete list of all of the fees that you will be responsible for paying.
You need to determine the terms for repayment. You need to ask the payday loan lender how long you have to repay your payday loan. If you repay your payday loan in advance, the payday loan lender shouldn’t charge you any penalty fees. Therefore, you need to ask the payday loan lender about any penalties for prepayment. You need to look elsewhere for your payday loan if there are prepayment penalties.
While fees and interest rates may be the most important things to you, you also need to compare the payday loan lender’s customer service. You simply don’t want to do business with a company that doesn’t have good customer service.
Prior to signing on the line for your payday loan, you need to check out the payday loan company with the Better Business Bureau (BBB). You need to contact the BBB in the city and state that the payday loan company is located and determine if there have been any complaints by previous customers with regards to the payday loan company and if so if they were appropriately resolved.