Its no secret that Payday Loans are expensive. Payday loan fees and interest are about 5-10 times more than that of a credit card. The benefit to using a payday or cash advance loan is that you can get the cash fast and the loan approval process is relatively quick. There is no credit check, so that's one less obstacle to overcome. But it is important to get the cheapest, lowest fees you can when you do get a payday loan.
Here are some tips to help you get a cheap payday loan:
Compare 3-6 Payday Loan Companies Before You Decide - Payday loan companies fees can vary greatly. Make sure you compare multiple lenders before you decide. Even if the company says that they have the lowest fees. Don't take their word for it.
Read The Fine Print - When comparing fees from payday lender to lender make sure to read the fine print. When they say their fees are $10 per $100 borrowed, find out how long that is for. Is that for a 14 day loan or is that per week? Make sure you know how much each company is charging per 14 day period, per $100.
Only Borrow What's Necessary - This is not the time to get a little extra cash “just in case". Payday loans will always be available. If you do end up needing more money you can borrow more from another company. Only borrow the bare minimum that you think you will need. It would be tremendously wasteful to end up borrowing more than you needed, to pay the interest on money that sat in your account and then you just turned around and gave it back to the lender.
Borrow For The Shortest Amount of Time Possible - Ask about an early payoff. Does the lender allow you to pay the loan off earlier than expected if you are able to? Make sure you can, you don't want to be paying extra interest on money you no longer need.
To view our list of recommended payday loan companies online, visit this page: Our Recommended Payday Loan Companies Online .
Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.