Many people find themselves in the situation when their expenditures exceed their income and bills pile up and there is no way out of it. However, even in such unpleasant moments solutions can be found. One of them is payday loans – short-term small cash loans that can be taken very
Different states have different attitude to such type of lending and some states are more lenient while others are more restrictive. The Consumer Financial Protection Bureau provides a lot of information on the account of these law regulations and laws as well as interest rates and maximum law amounts. In some states where laws are softer the APR can reach up to 900%.
Payday loans are offered at very convenient terms and they are also easily available to customers with bad credit. Which is one of the reasons why so many people choose them as an option; and especially when there is no other option. However, due to their unsecured and short-term nature these loans are also very expensive and therefore are pretty much despised and disapproved by many.
Many opponents say that loans are predatory in nature as they frequently cause a person to become more indebted than before; however, the loans have one and very advantageous side – they do actually help people in the state of financial emergency. And they are also available for any situation without delays or hassle or any paperwork and checks that are involved in a traditional credit-making process.
The thing about payday loans is that before you actually take any make sure that the company is reliable. This is where Better Business Bureau (BBB) information can help.
BBB represents a reputable and reliable source of business information. They take their responsibilities seriously and they never give accreditation to doubtful and unreliable businesses with dubious and shady nature.
The companies that are listed and marked as BBB accredited are actually checked and found ok. Which means that it is better to apply to those lenders who took a trouble finding such accreditation.
Next thing is reading customer feedbacks. All BBB listed businesses have all the feedbacks and complaints listed on the page so that you can see whether people are generally satisfied with the service or not.
One of the most essential things about payday loans is that a legal and reliable lender never asks for an upfront fee. Which means that no prepayment or wire transfers via any money transfer agency should be required. If you are asked for a prepayment, do not deal with this lender, they are very likely to be scam.
In order to borrow wisely, make sure that you take exactly what you need and not more. The thing is that extra money is very easy to spend and not so easy to return. Too large a loan can become a very serious burden for your income and can lead to delayed repayments and roll-overs – and this is where the tale about predatory lending, possibly, starts.
If you decided to take a payday loan, make sure you read the contract carefully and especially the fine print. Besides, keep all the papers that refer to the process in one place. You never know when you may need them. Keep in mind that you have BBB to file a complaint to in case you come up with a fraudulent lender.