5 Steps to Finding the Cheapest Guaranteed Payday Loan
If you find yourself in a situation where you need cash fast, then you may be considering a guaranteed payday loan. These loans may not be for everyone but they can be beneficial and do not have to cost as much as you may think. Here are 5 steps to find the cheapest guaranteed payday loan.
1. Can You Afford the Cheapest Guaranteed Payday Loan
You first need to evaluate whether or not even a cheap guaranteed payday loan is something that you can and should afford. There are many reasons that you may need emergency funds through a payday loan, but there are also a few reasons that you should not.
Before accepting the terms of a guaranteed payday loan, you should ask yourself a few questions to see if this sort of loan is the best option for you.
- Can you payback the loan by the due date?
- Is it possible to get the money through other, less expensive, means?
- Is this simply part of a cycle of borrowing to pay off other borrowed money?
2. Know Your State's Cheapest Guaranteed Payday Loan Regulations
The guaranteed payday loan industry has become more regulated over the last decade or so and thus each state will have its own regulations that must be followed by lenders. It is important for you to know your state's regulations in order to guard against being taken advantage of as well as to understand the elements of your specific payday loan.
- Max loan amount
- Max interest rate
- Max collection fees
- Max interest total
- Max amount of payday loans outstanding
- Repayment period
These regulations will vary from state to state. Some states may have restrictions on the loan amount and interest rate, but not on collection fees, so it is important to understand the regulations that affect your guaranteed payday loan.
3. Compare Interest Rates for the Cheapest Guaranteed Payday Loan
While most states will have regulations limiting the interest rate or the total amount of interest that can be charged by payday loan lenders, this doesn’t necessarily mean that all lenders will charge the maximum rate.
Compare the interest rates and you may find one particular payday loan lender will go below the maximum amount. It takes this sort of shopping around to find the cheapest guaranteed payday loan lender.
4. Compare Other Fees for the Cheapest Guaranteed Payday Loan
One way some payday loan lenders increase the cost of a payday loan is through administrative and collection fees. These fees may be small or they could be rather large and make a considerable difference between a cheap guaranteed payday loan and an expensive one.
Many states cap these fees but not all do. To make sure you are getting the cheapest guaranteed payday loan possible know upfront all of the fees that may be assessed on your loan and make sure they comply with state regulations.
5. Use Online Resources to Find the Cheapest Guaranteed Payday Loan
It is much easier to do the research necessary to find the cheapest guaranteed payday loan if you use the internet. You don't need to make the large number of calls that would otherwise be necessary.
By going online you can compare rates, fees, as well as look up the state regulations concerning payday loans. In addition, you can also research the companies that offer guaranteed payday loans. It is important to work with a reputable lender. You can check on their history as well as look up any complaints filed against them to the Better Business Bureau.
Once you have finally made your decision about which lender to go with, you can apply online for the cheapest guaranteed payday loan and have the emergency funds in your bank account and available to use quicker than you imagined.