The Do's and Don'ts of Finding the Right Payday Lender

DO find out what companies are in your area before you choose a payday loan lender. They can vary in fees, reliability and customer service. If you decide to find a lender online, make sure they are based in your country.

Companies that don't reside in your country are not held by the laws in your country and you might find yourself in a situation you'd rather avoid.

DO compare companies. Line them side by side on the computer so you can see clearly what they offer and what their guidelines are. If you are going to a store front then I suggest calling a few different places and getting all the same information to compare.

Questions you might ask are as follows: How much do you charge for every $100 borrowed? Do you have a minimum and maximum borrow amount? What is your policy for rollovers or extensions? What are your fees for a late or missed payment?

DO take with you your proof of income for a couple of months and proof of a bank account. If you want the funds direct deposited they will need to have proof of a bank account.

DO realize that this is meant to be a short term loan only. Don't take it if you can't pay it back within a few weeks time. This is meant to help you till your next payday.

DO feel good knowing that if you have no credit, or bad credit, that you most likely will still be approved. If they pull your credit, it is only for information.

DO visit the Better Business Bureau website to make sure the company you are thinking about using is in good standing.

DO bring your bank information with you to allow them to pull the money from your account the day you get your paycheck deposited. This can save a lot of hassle in trying to pay it yourself or make multiple payments.

DO learn what the laws are in your particular state or country and make sure the lender you choose is adhering to them.

DON'T just sign on the line without asking questions. Be sure you know what your entire contract consists of before you sign.

Clarify everything with the representative. Make sure you both are clear on when you are going to pay back the loan and ask any other questions you might feel relevant to the situation.

DON'T get into the habit of using this money because you need it for every day things. These loans are meant to be short term and for urgent matters that can't wait till payday.

If you get these loans all the time, you will be paying much more in fees that you would if you went to a traditional lender and got a bigger, long term loan.

DON'T feel pressured by any salesperson. If they sales person doesn't treat you like a valid person with valid concerns and issues, then walk away. They usually are trying to get your money and care about you.

Sometimes they do this when they are not legitimate companies and they are out to con you. Sometimes they just don't want you to change your mind or go somewhere else. A confident lender is a good lender.

DON'T make late payments! Some companies charge steep fees for late payments. Communicate with your lender the minute you think you are going to have a problem making your payment.

DON'T think that every company is alike. The industry is pretty standard, but each company will do things just a little bit differently.

These loans can be very useful when you are in a time of need. These simple tips and tricks will keep you informed and in control when applying and receiving a payday loan. Remember to be a smart consumer and research information before making decisions and spend your money wisely.

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