Faxless Payday Loans

1. Understand Annual Percentage Rate: Payday loan finance charges generally range from $15 to $30 for each $100 borrowed. When disclosed as an annual percentage rate, this can range from around 390 percent to 780 percent. Truth-in-lending laws require that lenders must disclose the actual cost of credit in the form of annual percentage rate (APR).

2. Understand What a Rollover is: Most payday loan borrowers renew or rollover their loan at least once. When a borrower files for an extension on their loan, it effectively rolls it over to a future repayment date which is the next paycheck. Additional fees are paid for each rollover which can create a seemingly endless cycle of debt. Most states allow unlimited rollovers. An exception is the state of Indiana which does not allow rollovers.

3. Know Who You Are Borrowing From: A red light warning should go off when you learn Internet payday lenders provide very little information about themselves and require insignificant amounts of information from the borrower. Often email addresses and toll free telephone numbers are the only payday contact information and no physical address exists. A borrower who is having difficulty with just such a company has a tough time making contact. On the other hand, collection tactics for payday loans can be aggressive. Lenders can require customers to sign an “Assignment of Salary and Wages” authorizing them to go directly to the borrower’s employer to collect the debt. We recommend using an established payday loan broker like http://www.nextdaycheck.com.

4. Make Sure You Understand the Loan Due Date: Payment of the loan is due on the next payday unless the next payday is less than seven days away, then payment is due on the second payday. The maximum cash advance for the original payday loan is 30 days. A small number of competitive payday lenders will prorate the loan if it is paid prior to the payday.

5. Know the Basics About the Law of Payday Loans in Your State: A Reno, Nevada judge reported that he has seen cases of APRs as high as 7,300 percent on certain payday loans. Almost 40 percent of civil cases in Reno’s courts and 34 percent of cases in Las Vegas courts are brought by payday lenders that have literally clogged the system. New state laws benefiting the consumer are being passed regularly. If you live in a state where payday loans are legal, you’ll be charged lower fees. In states where payday loans are illegal, the lender will not be licensed, will charge higher fees and you could be subject to questionable practices. Always know about the law of payday loans in your State.