A lot of people are turning to one-hour pay day loans these days just because their paychecks aren't stretching far enough any longer. If you're one of these people who have been thinking about borrowing money, here's a list of things you need to know:
1. Find a website that gives you all of the information you need right up front. Never deal with a site that tries to bury the actual amount you'll be paying in a bunch of glowing words. If they aren't willing to make it easy for you to know how much you're going to end up owing, get out of there quick.
2. Choose a company that has a good reputation. Many of the loan businesses are run by people who are only in it to get as much money from innocent consumers as they can. They do this by charging exorbitant interest fees. Look for companies that have been in business for a long period of time and which have actual brick and mortar stores so you'll know they aren't just fly-by-night operations.
3. Check out pay day advance loan review websites to see what others have to say about their experiences with various companies and to find out which companies have been rated highest. Knowing that these sites may be biased, you want to check out several of them to see if they agree. Find review sites that evaluate many different types of products for more accurate reviews.
4. Find out what kind of customer support the company offers. You want to find a reputable business that will give you a 1-800 number and offer you service 24/7. Ratings sites and customer reviews will give you information about this.
5. Read the fine print carefully and read between the lines. When a site says "Low fees, $ 15 per $ 100", it doesn't sound like much. However, what that's really saying is that if you borrow $ 1000, it's going to cost you $ 150 in fees. If the loan is for four weeks, you could end up paying an extra $ 150 each week for the four week period or $ 600 a month on a $ 1000 loan.
6. Be careful about what you read. If the site tells you that you won't be paying one penny for application fees, don't take that as meaning that what you borrow will be exactly what you pay back. All that means is that it won't cost you anything to fill out the application. The copy on these sites has been written to lull you into complacency, so don't fall for it.
7. Know how much you really need to borrow and stick to your guns. Many of the sites operate with you filling out a short application and then having a company representative call you to confirm the details. Never let this salesperson talk you into borrowing more than you originally set out to borrow, and make sure you get satisfactory answers to all of your questions.
8. Research your rights before borrowing money. Both the federal and state governments have set up certain regulations that pay day advance loan companies need to adhere to. By educating yourself first, you may end up saving yourself a lot of heartache later on.
9. When you take out a pay day advance loan, you're taking a chance with a company you don't know. Check with the Better Business Bureau and Federal Trade Commission to find out how many complaints have been lodged against a company before doing business with them.
10. Be wary of giving out too much personal information over the Internet to an unknown company.
Although all of the pay day advance loan companies will tell you they are secure sites, they will still ask you to send them information including your name, address, social security number, driver's license number, and bank account numbers. In the wrong hands, this information could lead to identity theft and major financial problems.
As you can see, taking out a pay day advance loan isn't as cut and dried as the company websites would like to make you think. There's nothing wrong with borrowing a little money if an emergency arises, but you need to beware of possible pitfalls and make sure you have all the facts before you agree to borrow anything.