By Wendy Clay on November 4, 2011
.jpg.aspx) When it comes to payday loans, the best option is no payday loan. Unfortunately people often find themselves unexpectedly in need of immediate money. At times such as this, payday loans may be the only option available. In order choose the best possible payday loan from the plethora of payday loans available today there are a few things one must consider. The most important issues to be taken into consideration are:
- What amount of money must be borrowed? When determining which payday loan best suits your needs, it is important to research the minimum and maximum loan amounts advertised by payday lenders. Generally lenders offer payday loans in the range of $100-$1500 dependent upon monthly income, but some lenders have lower maximum borrowing amounts whereas others may allow you to borrow more.
- How soon is the money required? The majority of payday lenders are capable of depositing money into your checking account by the next day, with a maximum delivery period of five business days. If you need the money immediately, you will want to check the lender’s approximate loan delivery speed, delivery options (i.e. direct deposit vs. wired to the bank), and whether or not they require additional fees to deposit money using a particular method or within a certain time period.
- When will you be capable of paying off the loan? Most payday loans are required to be repaid when you receive your next paycheck, which translates to fourteen to twenty-eight days after the loan has been taken out. Unfortunately, you may not be able to repay the loan in its entirety by that date and will default. If you realize this, search for payday lenders that offer special extended repayment periods.
- What fees are associated with the loan? Fees for payday loans are typically fifteen to thirty percent of the loan amount, but if you are opting for a specific method of receiving your money or a special repayment plan, you will want to research what additional fees accompany such services.
The easiest way to research minimum and maximum borrowing amounts, delivery options, repayment plans, and loan fees is through a payday loan match website that sends your information to multiple payday lenders and in return gives you a list of each lender that would approve your loan and the specifics of the loan. Many websites offer such services, but be sure to check the credibility of the site you choose.
Sources
Payday Today. 2007. 5 Oct. 2011 <http://www.payday-today.us>.
TopConsumerReviews.com. 2006-2011. 5 Oct. 2011 <http://www.topconsumerreviews.com/paydayloans/>.
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