Getting a payday loan is easy, quick, and convenient. But before you decide to borrow from this form of short-term credit, you must familiarize yourself with the group of lenders who offer these loans. Five companies dominate the market for the best real money payday loans, and each has its fees, policies, and benefits.
To determine which lender is for you, look at the following questions. If you can answer yes to all or most of these questions, then proceed with your loan evaluation; if not, continue reading this article for more information about the lenders’ strengths and weaknesses.
As a result, you’ll want to look into how long each company has been in business. You’re also looking for a lender who has been around for a long time since it is likely to have had time to establish good creditworthiness with lenders and verify its claims about its role in the industry.
If you need a payday loan, you likely have a small amount of money to lend. Most lenders offer loans up to $1,000 and have a minimum loan size of $20, but some may offer lower or higher limits. The number of times you can take out a payday loan varies by state, but it can range from as few as three to as many as 20 – with most states’ laws allowing borrowers up to 6 loans per year.
In the past several years, the federal government has implemented new laws that require payday lenders to disclose the terms associated with their loans. This is important because if the lender does not disclose the cost of borrowing, it can be difficult for borrowers to compare different loans.
How much interest will be charged on each loan repayment. Interest rate estimates are available in most states, but for some lenders, you will have to request them from your lender directly. You can also view this information by visiting your local Better Business Bureau or state consumer agency website.