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Payday Loan Website Reviews - Learn Before Borrow
Getting a payday loan isn't usually considered a smart financial move; apply for one only in case of an emergency. If you are short on cash, try other strategies first. Borrow money from a friend or family. Ask for an advance paycheck from your employee. Call your credit card company and negotiate for an increased credit line. Sell your belongings on Craigslist or Ebay. Do odd jobs for people (mowing lawns, washing cars, walking dogs, etc). Only when all else has failed, then you might want to find a payday loan lender.
What's so bad about payday loans?
The interest rates for these loans usually range from high to preposterously high. If you can get a payday loan with an interest rate under 25%, you're very lucky. They are loan sharks, but you can't really blame them. The majority of borrowers they deal with usually have horrible credit, so these payday lenders do have to take risks. Another bad thing about payday cash advance is that if you can't pay it back, it will affect your credit score. Unlike pawnshop brokers, payday loan lenders report to credit bureaus. If you fail to pay back your pawnshop loan, you'll only lose your collateral. But if you keep accumulating debts from payday loans and failing to raise enough money to repay, your credit score will accordingly keep plunging lower and lower.
Do payday loans have any upside?
Yes. It is quick and convenient. Now you can apply for a payday loan and get your money on the same day with no faxing and no credit check. As long as you have a job and a checking account, your application is very likely to get approved. In addition, some people have cleverly used payday loans as a way to improve their credit score. As I've said before, payday lenders report your activities to credit bureaus. Timely repayment of the loan thus results in a positive entry in your credit history. This might be a quick way for people who have made financial blunders in the past to rebuild their credit, since it can be very hard for them to get approved for a credit card or other types of loans. However, use this credit-building trick only when you are 100% certain that you can pay back on time.
The following are some big online payday lenders. These loans have slightly different application procedures, requirements as well as terms and conditions. Choose the one that suits you best and try not to apply for more than one payday loan at a time.
National Payday is pretty easy and straightforward. First-time borrowers can get $100 - $400 for their payday cash advance. Only returning customers may be approved for higher loan amounts. There is only one interest rate for all customers, which is 25%. The application process doesn't involve a credit check. If you don't have access to a fax machine, you may scan your documents and attach them to your online application. Most loan applications get approved within 24 hours, and some people may get cash in their account on the very same day. As long as you have a checking account open for at least one month with no bounced checks, a steady income of minimum $1,000 a month, and not more than one other pay day loan from another lender, your loan application will go through.
CashNetUSA is a bit more complicated than most payday loan websites. They will check your credit score and use that to determine the loan amount and interest rate you'll get. Bad credit won't prevent you from receiving the loan but might result in a higher interest rate. It can be quite frustrating to apply for a loan, knowing that your unimpressive credit history won't do you any good and the interest rate might turn out to be too high for you to manage. People with decent credit, however, might like this site, as they have a better chance to get a larger payday loan with a more reasonable interest rate.
EZ Payday Cash
This is one of several new sites where you can find faxless payday loans. Your credit history won't be checked, but you must have worked on the same job for at least 3 months. You must have a checking or saving account for at least 3 months as well. And your monthly income must be at least $1,000. The interest rate for a pay day loan is 30% for all customers. New customers can borrow up to $400. If you have paid off the loan in a timely manner and would like to apply for another loan, you may be able to get approved for a bigger loan. People with higher income usually have a better chance to receive a higher loan amount.
AAA Payday Cash
AAA Payday Cash is very similar to EZ Payday. You need to have a stable job and a valid checking account for at least 3 months. The interest rate for all payday loans is 25%. No credit check. No faxing. One thing that might make AAA sound more interesting for desperate borrowers with big expenses is that first-time customers may apply for up to $1000 of payday cash advance.
This online payday lender provides super quick payday loans with no faxing or credit check, otherwise it wouldn't be called SnapPayday. The requirements are not very specific. You have to be currently employed and have a valid checking account, regardless of how long you have had the job or how many months the account has been active. The maximum amount a new customer might borrow is $1500, which is higher than what you can get from most pay day loan sites. But here's the catch: the interest rate won't be determined until your application is approved. Something tells me they are likely going to charge more than other places.
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If you've had any good or bad experience with payday loans, please feel free to share.