Loans Near Me – Understanding payday loans
The most basic explanation for a payday loan is that it is a way to bring in cash if you run short right before your payday. You’re basically getting an advance on your pay from a loan company instead of your employer.
Payday loans are a form of borrowing that lasts for a short period of time. You borrow a small amount of money at a high interest rate. When you borrow the money, you write a check detailing the amount you want to borrow as well as a fee. This check is dated in the future and is exchanged for the cash sum.
You typically date the check for your next payday, hence the name of the loan. If you find yourself asking the question, “how do I find payday loans near me?”, stop and think for a minute. Knowing what you’re getting yourself into is the best way to ensure you don’t have a terrible experience.
If you know what you’re looking for, you can use our tool above to find “Payday loans near me“. You just need to enter some basic information to help us, help you!
What to Look for in Loan Companies Near You
If your friend asks you, “Where can I find a payday loan place near me?”, you should be wary about answering. There are many such companies in the world today. Knowing which one to trust can be a problem. You shouldn’t go ahead and pick the first online or offline lender you see. Just like a bank, taking a loan from a lender is very serious.
You have to do as much research as you can about your lender before you enter into a business transaction. The last thing you need is to agree to terms of a loan you don’t even understand fully. Knowing the basics and staying informed is the best way to manage the debt you incur with your loan and pay it off in no time.
- Verify the legitimacy of your lender. There are way too many scams out there for you to sign a contract with an unverified lender. A lender who is the real deal will have a license to lend money within your state, province or region.
- Look into confidentiality clauses in their agreements. Protecting your private information is crucial at any stage. Ask about their policies regarding customer privacy.
- Check if your loan provider has a registration with the Better Business Bureau. You can also check the BBB and make sure that the loan places near me and you aren’t illegal!
- Know how much your loan will cost. Find out from your lender if they have hidden fees, extra costs, and small print in the loan agreement.
- Speed is everything. Ask the company how quickly they will be able to provide you with your funds. After all, you could be having an immediate emergency!
- Check the quality of their customer support. Customer service is a huge part of a good experience with payday loans. Any questions you have must be answered clearly and promptly.
- Check out the application forms and process. Is the application easy to use, understand and fill out? Do they ask for too much personal information?
- Availability is important. Ask yourself this question: “Do I want to get online payday loans or do I want to find payday loans near me?”.
The Advantages of Getting Payday Loans
Before you enter a loan agreement or a different credit arrangement, ask yourself the following. “Do I need fast funding?”. If the answer is yes, typing in ‘payday loans locations near me’ into that search bar might be the best option for you.
In comparison to the many other forms of loans and credit out there, payday loans have distinct benefits. Here are five of the biggest perks of getting payday loans instead of other types of credit.
This is probably the biggest advantage of getting a payday loan. These loans are incredibly fast to get. You could, at any point, decide you need money immediately. All you have to do is look for ‘loan places near me’, find the most viable company either near you or online, and then apply. You should have the money in your hand or in your account in an hour or so.
Other types of credit simply can’t match up to this speed of approval. A good example is trying to get a new credit card with a bank. You would need to apply for the credit card, wait for approval from the company, wait for credit checks to be run on you, and then wait for the card to arrive at your home in the post. Payday loans, on the other hand, are nearly instantaneous.
- You don’t need high qualifications
The ease with which you could qualify for a payday loan is another one of the advantages of getting them. Your credit rating isn’t an issue in this case. Companies that issue these loans just want to know how much you make each month and whether you have a real job. Of course, they do perform certain checks. Their main goal is to ensure you have the money to pay back the loan in the future.
That’s the only qualification you need to satisfy. If you do, the money is yours. For other types of loans, such as from your bank, you would need a good credit rating, loads of time on your hands, and some luck too. The time taken alone can be taxing on you, especially if you need to fulfill a financial emergency as fast as possible.
- Cash on hand
The best part about a payday loan is that you are given cash that you can use immediately. The second you give your check to the lender, you receive the money either as cash or as funds in your account. This is far more convenient than a credit card, for instance. In this case, you’d get credit but no real cash. You wouldn’t be able to withdraw all your credit on the card in cash either. However, looking for a “cash advance near me” and applying for one is easy, fast, and provides actual, tangible pay.
- These loans are flexible
The flexibility of this type of loan is another reason why they are so useful. When you get the money to you hand, there is no limit on how you can spend it, how much you can spend, or what you can spend it on. With most bank loans, you have to spend the money you receive on a specific item. For example, a mortgage would have to be spent on a house and nothing else. A car loan would have to spent on buying a new car. This is not the case with a payday loan.
- Convenience at its highest
These loans are incredibly easy to apply for, get, and deal with. The companies are nearly always online or open. Hours are far more flexible than at most banks. You could search for ‘payday loan places near me’ at 7 in the evening, and the chances are at least one will still be open. This is in contrast to banks, which close at about 3pm every day. The payday loan stores typically have live chat, email, and round-the-clock customer support available too, based on where you get the loan from.
The Drawbacks and Risks of Payday Loans
When things get difficult for you financially, desperation is the first reaction you will have. There are bills to pay and mouths to feed at home, after all. Payday loans can be a great option if you satisfy the requirements, but these aren’t without risks. After all, you’re taking out an advance from a company that isn’t your bank or a finance company. Here are some factors you may want to consider before you go ahead with that payday loan.
- The high rate of interest
This risk can be one of the biggest when you get a payday loan online. Since the loans are unsecured, the company charges a higher rate of interest to ensure their own security. You might be offered a low rate at times, but you still are at risk of getting scammed out of more money if you aren’t careful. An example of a catch in a low interest rate would be a clause that grants the lower rate for a certain maximum loan amount, after which a higher rate is applied.
Typical interest rates are about $15 to $25 for every $100 you take out. Since the reason you would get a payday loan is that you are in a financial emergency and have no time to get a credit card or go to a bank, you are at the company’s mercy. You have to ensure that you’re not getting tricked into paying a higher rate. Regardless of the bind you are in, take the time to read through your loan terms and conditions before signing a binding agreement. There are good payday loan companies out there. You just need to sift through the rabble first.
- The short time for the loan to expire
One of the biggest benefits of a payday loan is the speed with which the money is given to you. The problem is that you also have to pay the money (plus fees) back in a very short time. The longer you take to pay the loan back, the faster the charges mount.
Late fees are quite high with payday loan companies, especially the newer ones out to make a buck off people like you. If you aren’t quick with your repayment, you could find the amount you owe skyrocketing.
One thing to remember is that even though the company doesn’t check your credit rating when you apply for a payday loan, you are still going to see a negative effect on your credit rating if you don’t pay the loan back on time.
You might be asking us, “why would payday loan places near me have a problem if they get paid on my payday?”. While it is true that you do sign up for a loan by agreeing to pay the loan company back on your payday, the problems arise if you need to extend the date of repayment due to other circumstances. Unlike banks, the payday loan companies aren’t forgiving of borrowers who have to delay repayment. Make sure you have the means to pay the loan back before you borrow!
- Some companies prey on low income earners
Payday loans aren’t approved by taking you through the traditional approval process. Your credit isn’t checked and there isn’t much security. Some companies try to take advantage of people with lower incomes due to this. If you think you will have trouble making the repayment immediately at the agreed upon time, you’re going to be in trouble. Make sure you are able to fulfill your end of the deal before you sign any agreements or make any decisions. The last thing you need is mounting debt due to a bad decision with the wrong company.
Tips for Using and Applying for Payday Loans
- Consider your reasons
Before you get a payday loan, you need to ask yourself what you need the loan for. This is because one of the most common issues people face after getting the loan is the high rate of interest. For a two-week loan, you might wind up paying as much as 400% in interest with the wrong company.
This basically traps you in a cycle of debt that doesn’t end. If your original reason was to cover a small debt, this is going to be negated by the huge amount you will soon owe the lender. Always think about why you need the loan. If you happen to have taken the payday loan out to cover a small fall in your cash flow, or to cover living costs, your debts will soon start to rise for no apparent reason.
Always start the payday loan hunting and application process by considering your reason for wanting the money in such a short time. Is getting a payday loan near me really the best way to satisfy my financial needs? Remember that this is a short term loan that has a very high interest rate. These loans can be very useful if you want to make a quick, small purchase or to get yourself out of a sticky situation. The problems begin when you starting taking out these loans to try and pay your bills and rent. In a very short time, you’ll be taking out new loans while you have others left unpaid. Your life will start to collapse. Use these loans for simple, one-time payments and you should be fine.
- Don’t borrow from multiple companies
Don’t do it. It can be tempting since there are so many loan places near your location when you search for ‘loan places near me’, but you shouldn’t do it. You might try to justify it with a whole range of excuses, but the bottom line is that it is illegal and wrong. It is a criminal offence to get more than a single cash advance on your paycheck for a given month. The debt you accrue by doing this will be far more than your pay can repay in a single month. This leads to you being unable to pay off the loan from at least one of the companies.
The best advise it to what you can not to get into the situation of needing a loan. The most common case we see is someone getting into a car accident and not having enough coverage, or enough for the deductible. This is easily remedied by finding some cheap full coverage car insurance! Which we highly recommend you look into.
You’re Responsible for Your Own Choices
Payday loans are not a bad thing. People will tell you to avoid them at all costs. You will be advised against them time and time again. The truth is, these loans could get you out of a fix when nothing else can. If there is a massive financial emergency that pops up in your life, a payday loan could get you out of hot water.
The key to having a good experience is to be responsible about it. You have to learn and understand the risks of these loans, as well as the consequences. Always read the fine print and know the terms of the loan by heart before you sign anything. Know your interest rate and hidden cost. Decide whether you truly need this loan to get you out of the bind you are in.
Once you have made an informed decision, search for ‘reputable payday loans near me’ and get started. Remember – only you can control your debt. Get informed and wise up about your finances today.