Payday advance loans are loans created to help an individual with his expenses until the next payday. It is usually small and short-term and is also sometimes called paycheck advance, payday loans, or cash advance. There are several companies that offer payday advance loans. Before making any loan, you would be wise to check out a company’s requirements, their interest rates and the flexibility of their terms of payment.
Every company is different thus they have different requirements and interest rates. Do your homework first and check out at least 3 or 4 companies and make comparisons among them. As you make comparisons, one of the first things to look into are the kinds of requirements that each company have. Will you be able to comply with their requirements? Admittedly, these companies will no longer do a credit check on you. They already assume that you will not have enough credit history to your name. If you had, then you would not need their services.
Most payday advance loans businesses will require you to have some proof of an income, a savings account and a checking account. Some companies will ask for your bank’s statement of accounts. The proof of income varies from company to company. If you currently have ongoing payday advance loans from other companies, or if you have already tried the services of another company, make sure that your experience with them is positive. These companies have ways of finding out if you are a good or bad debtor.
Next, check out the rates of interest. Interest rates are easy enough to check as these can be seen online. Again, rates vary according to every company. The Truth in Lending Law requires companies to post their interest rates for the public to see. If you cannot find it, you can ask them directly for the rates.
Check out the fees that they add on your principal and interest rates. Some payday advance loans companies have a flat rate, while others have a different processing fee. Do your research on these in the companies that you are considering. Fees can jack up the prices.
Make sure that their customer service agents are available to answer your questions anytime. While you may not need much help in the application of the loan, will you be able to contact them immediately in case you have some questions for the future? And if you should decide to change your terms of payment, you’ll need the services of their customer service agents.
Finally, check out their application process. With today’s technology, the application process should be smooth and sometimes even faxless. The processing is done on the same day you lodge your application. The money should be deposited to your account on the very next day.
Payday advance loans should be used wisely. Before taking a loan, make sure that you have the capacity to pay them. It should assist you and not make you dig deeper into debt. If you think you cannot make the payment on their due dates, don’t take out that loan.