How to Get Cheaper Payday Loans

Almost everyone at some time or another has needed a quick loan. But, if you have bad credit, it can be difficult to borrow from a bank or credit union. Unless family or friends are able to help you out, one of the best options is to apply for a payday loan. The amount you can borrow depends on the lender, but the majority of payday lenders do not require a credit check and you can typically get the money within one to 24 hours. If you have never borrowed from a payday lender before, there are a few key things you should know so that you get access to the funds you need at the lowest cost possible.

Interest Rates

Depending on where you live, the average APR for a payday loan can often be as much as 650-700 percent. The high interest rate can add a significant amount of money on top of what you’ll be borrowing and subsequently need to pay back. As such, it is important to do your research. Instead of accepting the first offer, you should check with several lenders to find the lowest interest rate possible. Keep in mind that a majority of lenders will charge a high rate, but if you take your time and research your options, you can find a lender that offers a lower rate than their competitors. Check the rates of both online and offline lenders.

Limit the Amount You Borrow

Avoid borrowing more money than you really need simply because it is available to you. Keep in mind the more you borrow, the more you will have to pay back. Do not borrow from a lender than only offers less than the amount you need to borrow. This will only encourage you to borrow from more than one lender, which means you will have to pay double on the interest, fees and the amount that you actually needed.

Avoid Extensions

Before you borrow from a payday lender, it is important that you will definitely have the funds to make the payments when they are due. If you need more time to repay the loan, you will end up paying more in late fees and in some situations you will have pay a re-filing fee. If you need more money than you are able to pay back quickly, check for other options. There are payday lenders that will allow you to pay the loan over an extended period of time without charging a fee.

Coupons and References

Businesses, including payday lenders, often have coupons available for their customers. Check local newspapers for coupons offered by local payday lenders, which are typically good for a lower interest rate. Some lenders will also offer a discount on your interest rate if you are referred by another customer.

Before accepting a payday loan, it is important that you understand the interest and fees related to the loan. Carefully read the terms and conditions to avoid any surprises. Payday loans are great in an emergency, but remember they must be paid back, so utilize them when necessary, but avoid borrowing for things you do not need.