8 Things That People Get Wrong About Payday Loans

Despite how popular payday loans have become in recent years, there are still a lot of things that people get wrong about them. If you are currently on the fence about getting one of these loans, you need to know the facts. Once you learn more about payday loans, you will be more inclined to get one when you need quick cash. These loans can be very helpful when you are having cash flow problems and need to pay for a crucial expense right away.

  1. Security

Some people believe that you cannot get an online payday loan without sacrificing the security of your personal and financial information. The truth is that pretty much every private lender’s website is 100% secure. These payday loan businesses use state-of-the-art encryption to protect their customers’ details. You won’t have to worry about getting your identity stolen by some malicious hacker. While it might be technically possible, the chances of it happening are extremely unlikely.

  • Interest Rates

Another common misconception about payday loans is that they always come with absurdly high interest rates. If you are willing to shop around for a bit, you can actually get a pretty good deal on one of these loans. The more time you spend getting quotes, the easier it will be to do this. There are some lenders that might charge you too much, but it’s fairly easy to get a loan with a decent interest rate. You also have to keep in mind that your credit can affect the rate you get with your loan.

  • Repaying the Loan

Some people think that repaying a payday loan is incredibly difficult, but it’s really not. As long as you know when the money is due and don’t take out more than you need, you will be fine. No lender will allow you to borrow more than you can afford to pay back. You should consider opting for automatic repayment. With this arrangement the money will automatically be taken out of your checking account when the loan payment is due.

  • They Are Only for the Poor

Payday loans have gotten a reputation for being the “poor man’s loan”, but the truth is that they can benefit virtually anyone. Even those who do not have bad credit often choose to get a payday loan because of everything they offer. There are many great deals to be had, so you will need to keep that in mind.

  • Shady and Unscrupulous Lenders

Not all payday loan lenders are shady, and in fact most of them are perfectly legitimate and quite reasonable. You will most likely find these lenders to be more flexible and amenable than most banks. This is just one of the many reasons that so many people have started taking out payday loans. You definitely need to research your lender options, but there are plenty of great businesses out there to choose from.

  • Fees

If you think that all payday loans come with hidden fees, think again. A small number of lenders may charge hidden fees, but most do not. As long as you take the time to find a reputable lender, you shouldn’t have to deal with this issue. Always take a close look at the contract before signing so you can see all of the fees you will be required to pay.

  • Guaranteed Approval

You have probably seen some advertisements from payday loan lenders with the phrase “guaranteed approval”, but it’s just not true. No lender can honestly guarantee approval for every single applicant. You should always avoid lenders that use this phrasing on their websites or in their advertisements. It is pretty easy to get a payday loan, but your approval can never really be guaranteed. It is important that you keep this in mind so you can manage your expectations.

  • Regulations

It is a common myth that payday loans are not regulated at all. While it is true that these regulation laws are fairly new, they are in place. This means that you won’t have to worry about getting ripped off or scammed. These lenders follow very specific laws and guidelines laid out by the government. The regulations that govern payday loan lenders aren’t the same as the ones for banks, but they do still exist.

Payday loans are not for everyone, but you shouldn’t avoid getting one because of misconceptions or misinformation. The truth is that these loans offer a wide range of benefits for a variety of people. If you find yourself in need of money for any reason, a payday loan can be of great help. Whether you need to pay for a car repair or just catch up on some bills, these loans offer an excellent overall solution to your financial problems.

8 Rules to Follow When Getting a Payday Loan

There are a few key rules that you will need to follow before getting a payday loan. These rules will help you get the money you need with minimal hassle. While it’s true that these loans can be helpful, there is also a lot that can go wrong. A seemingly small mistake can end up costing you a ton of money and frustration. This article will allow you to get this type of loan without all of the regret later on.

  1. Manage Your Expectations

If you are planning to get a payday loan, you need to manage your expectations. The fact is that not everyone who applies for these loans gets approved. Take a look at what your credit is like before filling out an application. Some private lenders like to advertise “guaranteed” loans, but this is simply not a realistic promise. Make sure that you also look into the requirements that each lender has laid out.

  • Never Lie On Your Application

Some people lie on their payday loan applications in an effort to improve their chances of approval, but they just end up doing the opposite. The fact is that the lender will figure out if you are lying about anything in your application. Always make sure that you only submit truthful and accurate details. This will help you boost your odds of getting the loan you need.

  • Apply Online

While there might be some local payday loan places in your area that you can visit, it’s always better to apply online. This will help you save a lot of time and effort. The lender’s website will have a section for filling out and submitting an application. You will be asked to submit your name, address, phone number, the amount you want to borrow, and other details. It shouldn’t take you very long to complete the application.

  • Choose a Legitimate Lender

The last thing you want to do is to choose the first pay loan lender you come across. Instead you will need to take some time to examine your options so you can select the best one. You want to find a lender that you can trust to provide you with a good deal. Some lenders are more flexible than others, which is all the more reason to do this research.

  • Don’t Submit Too Many Applications

It is never a good idea to submit a lot of different payday loan applications within a short period of time. Each application will count as a “hard inquiry”, which can hurt your credit. You should spend some time looking for a good lender and send out just one application. If you get turned down, you can always try another lender. Don’t get too carried away though, because it can really work against you.

  • Make Sure You Can Afford the Loan

One good rule to follow before applying for any type of loan is to be positive that you can afford it. You don’t want to get stuck in a situation where you have trouble paying back the money you owe. This can do a lot of damage to your credit and put you much deeper in debt. Those who are late paying back their payday loans typically stay in debt for weeks or even months after the due date.

  • Don’t Get Stuck with a Too High Interest Rate

Too many people who get payday loans end up with an interest rate that is much higher than it should be. The best way to prevent this is to get quotes from numerous lenders. You will be able to do this online visiting each lender’s website. These quotes can help you save a very significant amount of money on your loan.

  • Read The Contract Before Signing

Before the lender gives you your money, you will be required to sign a digital contract. Make sure that you read every single word of the contract before submitting your signature. While it may be a digital signature, it still makes the contract legally binding. This contract will lay out all of the relevant information for your loan. This includes the total loan amount, when it must be paid back, and your interest rate. You don’t want to simply skim through, as you could miss something important.

When you make a point of following these rules before getting a payday loan, you won’t have to worry about anything going wrong. These loans help countless people throughout the UK each year, and they could be the solution you need to your cash flow problems. Whether you want to borrow two hundred pounds or a thousand, these rules are important. You will be very glad you decided to do these things when getting your loan.