There are so many options and considerations for short term loans that it might seem overwhelming to begin the process. But it doesn’t have to be such a confusing path! In actual fact, there are a few universal steps that every consumer should follow before applying for a payday loan
LoansForPoorCredit has assembled a fail-safe guide to help structure each consumer’s search for payday loans. Think carefully and research any lender thoroughly before entering into any loan agreement!
1) Check the legal status of payday loans in your state
Before proceeding with the search or using LoansForPoorCredit’s smart comparison platform, you should ensure that you are legally permitted to apply for a short term loan in your state of residence. The National Conference on State Legislature has a state-by-state guide on its website showing the laws in each region.
Their site shows that 38 states allow payday loans and have special guidelines and laws governing their provision. These laws are in place to protect the consumer from unscrupulous lenders and should be heeded. If you live in one of the 13 jurisdictions which currently (as of March 2013) prohibit payday loans, you should consider approaching a local credit union for affordable lending options.
2) Cross-reference any loan offer you receive with the law in your state
Your next clever move is to cross-check the terms of any loan offer you are given against the information the NCSL and other official legislative bodies have published.
For example, if you live in Alabama and a lender offers you a 7 day short-term loan, your research will tell you that this is illegal. In that state, the minimum loan term is 10 days and the maximum is 31 days. Or if you live in Hawaii and a lender offers you a payday loan with 20%fee, this is illegal as the maximum allowed at law is a 15% fee.
Accordingly, should report any such lenders to your local state legislature or Attorney General and continue in your search for a reputable lender that abides by the law – do not accept loans that are not in compliance with the rules of your state!
3) Look into the reputation of the lenders you are considering
The internet is an extremely powerful research tool. Look online into the reputation of any lender you are considering to see how their clients have rated them and found their conduct. If you discover any alarming details, genuinely poor reviews or shady-sounding shenanigans, walk away and keep on searching for a bona fide lender.
Also, don’t forget personal recommendations – If you have a friend or family member that has used payday loan services, it’s always a good idea to get their opinion on any good or bad companies too.
4) Make sure you can afford repayments
So, you’ve double-checked you live in a payday loan-permitted district, have found a reputable and reliable lender through LoansForPoorCredit.net that operates in strict accordance with the law. Their reviews are stellar and you are happy with their offer. Great!
The final important stage is to make sure that you are in a position to repay your payday loan and meet your repayment obligations. Short term loans are a very effective way to temporarily increase your cash flow provided you will be in the black next payday. Never borrow beyond your means and always, always budget for repayments plus a little extra just in case…