Everything You Want to Know About the Best Payday Loans
Payday loan providers have been under immense pressure for a few major reasons. The allegations that they prey on or target low income earners has been the major reason behind the backlash they face. The fact that the lenders charge exorbitant fees that often leave their clients trapped in debt cycle only worsens everything. While it’s true that many lenders are guilty of all that they are charged with, but that still doesn’t take away from the fact that the industry plays a crucial role. Responsible lenders encourage proper financial management to get out of debt or financial crises. What is more, some lenders provide the best payday loans too.
What separates the best payday loans from the rest?
By nature, payday loans are short term. Typically, they last up to 30 days. You are expected to repay the loan within 30 days. In some situations, you could get a lender who provides you with more time, which could be between 45 and 60 days. However, the latter are rare. The most common are 30-day loans. More important – than the short-term nature of the loans – is the requirements for getting one. Most lenders want you – the borrower – to get the money. For this reason, they have made it easier for borrowers to apply for and qualify for one. You only need the following to apply for payday loans:
- a) Driver’s license
- a) Social security card/number
- a) Proof of income
- a) Bank account number
Most payday loan lenders don’t even concern themselves with your credit report, rating or score. Banks, on the other hand, would be more interested in that report. Payday loan lenders prefer making it easier for anybody to get the money. They don’t do this out of their altruistic nature. They do it because it’s good for business. They have removed almost all the barriers that would make it harder for you to get a loan. However, you still have to contend with the high fees and interest. In some states in the USA, the fees and interest can be as high as 574 percent. Remember, you only have a short time to repay that loan with the interest.
Give More People Access to Loans
Americans borrow more than $184 billion from friends and family each year. The reasons for borrowing differ from one borrower to the next. The tops reasons for borrowing include buying or servicing vehicles, staying on top of bills, taking care of financial emergencies, and paying tuition fees. Many borrow personal loans to consolidate the debt they owe. Other reasons include financing home renovation, catering for wedding expenses, repaying small business debts, and taking a vacation. Close to 12 million Americans rely on payday loans to cater for all these different expenses, which would be impossible to finance otherwise.
What to Look for in the Best Payday Loan Lenders
It’s important to know how to differentiate the best payday loan lenders from the rest. As stated earlier, some lenders go out of their way to offer you stunning services. Others are only interested in making as much money as they can from you. For this reason, it’s good to know what to look for in each one. This way, you would not allow your desperation for emergency financial assistance to drive you into the hands of a lender who could only make your bad situation worse. Below are some ideas to help you resolve this issue and prepare a shortlist of the lenders who provide the sort of services that you need.
- Size matters
How many offices does the lender have around the country? Ask yourself this question since research shows that 30%-40% of payday loan lenders are in it to scam clients. The same number of lenders provide these services to overcharge borrowers and make insane amounts of money. Confirm that the lender exists offline too. Some good lenders offer these services online only though. Do your research to avoid falling into the grip of the ones with ulterior motives. Otherwise, you would only be losing more money than you already need to enjoy financial stability.
- Compliance with Government Laws
It pays to familiarize yourself with the laws the local state governments have put in place, especially where you live. Limit yourself to what the laws say about payday loans. Based on this, restrict your choice of lenders only to those who comply with these laws. The lenders’ APRs have to comply with the official rates that the local government has imposed. Compliance is good as it protects you. The government stepped in to offer the protection that customers need. Sadly, several lenders try to operate outside the established legal requirements the government has put in place.
- Customer Service
The best payday loan lenders take care to provide clients with exceptional and reliable customer service. They are careful enough to set up professional customer service teams. Confirm that the lender has a working phone number. A website would also be great since you’re likely to access the customer service department via Live Chat. Chat with members of this team to evaluate how friendly they are towards you. How helpful are they? How quick are they to provide you with all the information you need? Do they withhold information from you? Do they answer your questions honestly and accurately? Contact the customer service to find out.
- Better Business Bureau
The Better Business Bureau could be your most useful tool in determining which payday lender to contact vis-à-vis the ones to forget. It reviews businesses based on how they resolve customer complaints. It rates businesses based on what customers have to say about the quality of services received. Don’t be in a rush to contact one for a payday loan without checking what the BBB has to say about it. The first one you see isn’t the best one for you, or it probably is. Research each lender thoroughly before borrowing. See what other borrowers have to say about each particular lender too. This information could help you to avoid many pitfalls.
What are the Best Payday Loan Lenders of 2018?
Now that you know all that, it would also be great to guide you on the best lenders.
- a) CashNetUSA Loan
This lender has very few requirements, thus making it easier for you to borrow money on short notice. Fill the application form that is online on its website. The dedicated customer service will also help you and answer any questions you may have regarding the payday loan. To qualify, however, you would have to prove that you’re at least 18 years old. Other than that, you would also need to prove that you have a regular source of income. A bank account that’s under your name is a requirement too. The amount of money you can borrow from this lender differs based on which state you are in within the United States.
- b) Check into Cash Payday Loan
This lender has 1,000 branches located in 30 states around the country. With those many branches, you have a much higher chance of finding a branch near you where you can visit and learn more about taking out a payday loan. You can apply for and get anywhere between $50 and $1,000 in a matter of days. However, the loans are only for Americans who are at least 21 years old. A bank account is also a requirement for anybody interested in borrowing from this lender. On top of all that, the lender expects you to have an active email address. The lack of a phone number is sufficient reason to deny you the loan you need.
- c) LendUp Payday Loans
First-time borrowers can apply for a minimum of $250. That amount can be quite useful in resolving the emergency that faces you. Clients with poor or bad credit scores need not worry about the lender rejecting their applications. The lender isn’t focused on providing loans only to clients with bad credit. Its offices and services are not everywhere in the country. Therefore, you would have to check its website to confirm if it has offices near you. In addition to this, you have to be at least 18 years old to qualify for the loan. Borrowers need a checking account too since the lender sends money via electronic transfers.
- d) BadCreditLoans.com
Are you concerned about your ability to get payday loans because of your bad credit? Worry no more. The firm offers easy approval to all applicants who meet the requirements. The minimum loan amount any applicant can ask for is $500. All loans have a lifespan of 3-36 months. The turnaround time differs from one applicant to the next and across different states. However, the lender tries to quicken the approval period for everybody. All applicants have to show proof that they are at least 18 years. Apart from that, the lender also expects that all clients or borrowers to have checking accounts registered under their name.
With this information, you’re free to look for the best payday loans.