What to look for in Payday Loan Lenders

Payday loan lenders provide people with emergency short-term loans. Most people who opt to use a payday loan lender are people who have exhausted their other financial resources. People with a poor credit score, households that make less than $60,000 per year, and single-parent households make up the majority of a payday lender’s customers. Payday loan lenders offer their borrowers loans anywhere from $100-$1500. However, the exact amount a borrower can receive depends on his or her monthly income. In general, a person must make at least $1000 a month to qualify for assistance.

The term “payday loan lender” is a general term used to describe any and all people who offer short-term loans against a borrower’s paycheck. A payday loan lender might be a self-employed millionaire who grants loans as a side job. Another payday loan lender might work for a small company in the Midwest. Many payday loan lenders work from Indian reservations so they can evade strict state laws. Not all payday loan lenders are equal and not all payday loan lenders can offer their customers the best rates. So if you plan on applying for a payday loan in the near future, here are just a few things you should look for when choosing your payday loan lender:

Is the website secure?

All reputable payday loan lenders care about the safety and confidentiality of their customer’s personal information. People who apply for payday loans usually apply online. This means customers will submit sensitive information, like their home address, email address, social security number, and bank account number, over the internet when they submit their loan. A payday loan lender with an unsecured website should be a red flag to anyone who wants to avoid identity theft. Check for a SSL (Secure Sockets Layer) certificate that indicates the payday loan lender has encrypted the site.

How expensive is the loan?

Most borrowers only need to pay a small fee to get a payday loan. If that person repays the loan on time and in full, they won’t have any other interest charges or fees. However, if a person fails to repay on time and in full, a payday loan can get extremely expensive. Some lenders’ penalties are harsher than others. In the past, many customers have found themselves paying fees higher than the amount of the original loan they borrowed. It’s critical for potential borrowers to check a payday loan lender’s site for an accurate description of how much the loan could potential cost them. Borrowers should avoid all payday loan lenders that don’t list this information or who brush it off as an insignificant detail. Remember, this is your money that we are talking about.

How easy is it to get the loan?

If you have to jump through hurdles to get in contact with a payday loan lender, find something on the website, or get ahold of customer service, you may have chosen the wrong company to work with. A good payday loan lender is one who cares not only about their customers’ money, but about their time as well. Be wary of any payday loan lenders who have lengthy online applications, a disorganized website, or who lack a customer service representative. The best payday loan lenders offer a convenient website, a short application, and a hassle-free application process.

How available are they to talk to you?

Choose a payday loan lender that has a call center open during the hours you need. A payday loan lender that has a 24/7 answering service is usually a good indicator of a reputable lender. Again, a good payday loan lender is one that cares about you and your needs. If you need to talk to your lender, you should be able to get ahold of them.

Were you matched with a payday loan lender through a third-party company?

There are many companies that connect payday loan lenders with borrowers. Some great third party companies include National Cash Credit. This process benefits a customer because it ensures they’ll get the best deal possible. In general, a borrower will fill out an online application through the third party company’s website. Once he or she submits the application, the application will go through a server for multiple payday loan lenders to observe. If a payday loan lender wants to take the request, they’ll notify you. Many borrowers prefer this method because it enables them the option to “select” their lender. Most borrowers choose to go with the payday loan lender that offers them the largest loan amount with the smallest interest charges. Because the third party website does all the work, borrowers don’t have to spend hours researching different lenders. The best part is that payday loan lenders pay the third party website for their services, not the borrower.

Do you meet the minimum qualifications?

In general, you must have a monthly income of at least $1000 after taxes, a checking account in your name, and proof that you are a U.S. citizen. You must also be 18 or older and have had your current job for at least 90 days. If you don’t meet these requirements, you will not qualify for a payday loan. Your time is valuable to us, don’t waste it applying for something that you won’t be able to get. If you do meet the minimum requirements, you can qualify for up to $1500 regardless of your credit score!

After you submit an online loan request, you will receive multiple offers from payday loan lenders. You can always deny any request you don’t like and owe nothing. The key to having a great experience with a payday loan lender is to repay them on time and in full when you receive your very next paycheck. If you don’t, the annual percentage rates become extremely high and extremely difficult to repay. If you do pay on time, we can guarantee that you will have a positive experience working with a hassle-free, fast, and convenient method for instant cash.

What to look for in Payday Loan Lenders, By Mindy Lobo - Today