Low Cost Payday Loans

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Author:
Carrie Reeder

Payday loans offer fast cash with no credit checks for relatively small finance fees. The important thing to remember with rates is that you are only paying them for a few days, not years. In the end, you should be paying fewer finance fees than with a credit card or loan. However, if you roll over you payday loan over several pay periods, your loan can get very expensive.

APR - A Comparison Tool

According to the US government, payday loan companies are required to disclose the annual percentage rate (APR) of a loan before you sign any agreements. While this makes sense for long-term loans, a payday loan on average is paid off in 17 days.

While an APR doesn't tell you the true cost of the loan, it is a helpful tool to compare lenders with. An APR is suppose to include both fees and interest rates. By simply finding the lowest APR, you will find the best rates on a cash advance.

Finance Fees

Finance fees come in the form of interest rates or flat fees. Finance fees vary, but $15 for every $100 borrowed is average. Some lenders waive part of the fee for first time borrowers, so it pays to shop around.

Save On Fees

You can save on fees by paying your loan back as soon as possible. Some lenders charge a finance fee by the day where others charge for a pay period. Ideally, you want to pay your loan on the first day you get your paycheck. Most online lenders will automatically deduct both your cash advance amount and finance fee.

If you can't pay the entire amount, then pay at least a small portion of the principal. Call your lender and ask about rolling over the loan to avoid any late fees. Don't bounce a check to your lender as you will only rack up fees.

If you plan on using payday loans for several periods, a better idea is to look into a credit card or line of credit. For long term loans, you will find better rates than with a cash advance.

About the author:

See my recommended Fast Payday Loan companies online. Carrie Reeder is the owner of ABC Loan Guide, which offers help with loans for people with bad credit.

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Payday Loans... Cheap Loans till Payday - Tips for Keeping Payday Loan Cost Low Before applying for an instant cash payday loan, applicants should understand how payday loans work, and become familiar with payday loan fees. Before cash advance personal loans, getting a loan during emergencies was challenging. Banks and credit unions rarely offer easy loans. Thus, the majority of people rely on credit cards. Payday loans offer cheap loans to all types of people. These loans are very practical. However, those obtaining loans must repay the funds on time and avoid borrowing too much. How Do Cash Advance Loan Companies Work? Cash advance lenders are similar to banks and other lending institutions. However, the requirements for getting approved for a cash advance personal loan are lenient. Banks have several requirements that applicants must meet. For example, banks rarely grant loans to people with poor credit, no collateral, etc. Cash advance loans are quite the opposite. In fact, these lenders specialize in no credit and no collateral loans. Thus, regardless of credit history, it is possible to obtain a quick cash advance. To make the process a little easier, the cash advance lender deposits the funds directly into your checking or savings account. You may repay the loan before the due date. If not, the funds are automatically deducted from your account on the due date. Understanding Payday Loan Fees Many people steer clear of payday loan companies due to fear of high fees. Each lender operates differently. However, you can expect to pay approximately $15 to $30 for every $100 borrowed. This flat fee is based on a two week loan. If you opt for a longer loan term, perhaps 30-days, the fees are doubled. Those seeking a small loan may not worry too much about the fees. The ...