When it comes to borrowing money, you should know who you are dealing with and what will be expected of you when it comes time to repay. While most payday lending guidelines are general and may seem the same from one lender to the next, it's important that you make paying off your loan as much a priority as getting the cash in the first place.
Knowing the difference between lenders is the first step to entering into a financial agreement that you feel comfortable about. Spending a little bit of time doing some research on who you can borrow from could be the difference between getting a loan from a reputable lender or getting yourself into a situation that you may regret. Consider the following when doing your research in order to make the best decision for your payday loan experience:
*Make sure the lender if licensed. This may seem obvious but there are plenty of companies out there lending without a license. What many consumers don't know is that each individual state determines whether or not payday lending is legal. So just because a lender can loan in one state doesn't mean they can loan in all states. As a savvy consumer you must find out whether or not payday lending is legal in your state. There are some exceptions to this which include tribal and offshore lending. These types of lenders can loan pretty much anywhere in the country but beware, their interest rates and fees tend to be much higher than most other lenders.
*Know what you are paying before you sign on the dotted line. While you may be in a hurry to get that cash (maybe even "desperate"), that doesn't mean you should agree to just anything in an effort to get money. There can be quite a difference in interest rates and loan fees between lenders. For a borrower, this could amount to paying back quite a bit more once all is said and done. When researching lenders, educate yourself on what each one charges for their small-dollar loans. Once you find a lender that offers terms you are comfortable with, be sure to get it in writing. While some lenders may stipulate in the fine print that they reserve the right to change their rates when they want, it's always best to have it in black in white from the get-go. If a lender is not willing to put that information in writing, move on to another lender who will.