Responsible Alternatives to Payday Loans

If you find yourself in this type of situation, how do you handle it?

A common payday loan is usually a very small, two-digit loan (usually less than $100) with a one-week repayment term at your next payday. That s how it works theoretically. However, if the word payday loan does not ring a bell, here are others names for it: post-dated check loan, paycheck advance, check advance, and paycheck advance planner. As you can see, the confusion over what to call it has no end to it.

You could ask a friend or relative who works at a nearby bank to help you out. However, they will probably charge you a fee that could be more than you will save by borrowing from a close friend or relative. Alternatively, you could research the Internet for “cheap payday loans” or similar terms and apply for them at a local office of a cash advance company. They will often have good rates and great service, which make it easy to obtain what you need fast.

If you need a payday loan with higher than face value, you could look into a short-term lender online

This type of lender may charge a higher interest rate, but you are likely to receive a faster turnaround time than if you used a local company. For example, you could apply for a payday loan online to borrow a thousand dollars and obtain the funds the next day, instead of waiting a week. Of course, you must repay the loan amount on time, otherwise the lender may charge you an extra fee.

Many state laws make borrowing from payday lenders illegal without first receiving a copy of the borrower’s credit report. Unfortunately, this means some borrowers may end up being charged higher interest rates, because they failed to request a copy of their credit file in order to see if they qualify for a payday loan. However, borrowers should always request a copy of their credit file from each of the three nationwide credit reporting agencies. This will help ensure that you are not charged excessive fees for borrowing from payday loan companies, and that you know what interest rate to expect when you borrow from a local source.

It is very important to be wary of anyone who offers to wire money

These people are definitely scammers, as they will not provide you with any documentation of your full payment or bank account. Any fees that you are charged for wiring money through a bank account are clearly labeled as such on the documents that they provide you with, so you will be able to easily see whether you are being charged an extra fee or not. If at any point you feel that you are being pressured, you should consider looking for another payday lending company.

Now that you have a better understanding on responsible alternatives to payday loans, you are better equipped to make an educated decision about whether or not payday loans are right for you. If you do decide to use a lender online, you should keep all of the above information in mind as well. That way, you will be able to make an informed decision instead of one driven by desperation.

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