The best direct payday lenders may not have the lowest interest rates, but they will have the most bang for your buck. How could you pay a few dollars more for every hundred borrowed and save? It's easy. For starters, there are many lenders that will hide charges here and there to help make up for smaller interest rates and then some. It is always recommended to investigate a company before you apply.
What do hidden fees look like? Some are tough to identify unless you fully understand how the short-term loan process works. It is important to talk to the lender directly and try to uncover any costs you may struggle to payoff later. Most of the added costs are hidden within the fine print or explained with confusing content in the terms and conditions so it is up to you to understand.
-One of the first added costs you can omit form your loan is the application fee. Look for "Free Application" notice on the site or call and ask just to make sure. Not all direct lenders do this, so make sure you find one that doesn't. This fee (usually around $30) is debited from the account listed on your application form. This money pays for the direct payday lending company to accept your application and process it. This does not guarantee that your loan will be approved. You will not receive a refund if the application is rejected. Before you start sending out applications, call and verify that the company services free applications.
-Some direct lenders will give customers flexible payment options. It is tough to pay back the loan amount plus fees in just a few weeks' time. The most common available options are roll-overs and extensions. These buy you a few more weeks to come up with the money. Buy is the appropriate word here. You will have to pay interest fees in order to push the full payment to a later date. This works very similar to a credit card. It isn't cheating anyone out of money. You will have to pay money to buy time. What you don't need to happen is get charged any additional costs for extending your loan date. Fees on top of interest charges are not fair to the borrower. Another hidden cost to uncover is happens to the interest rates once the loan is extended. There are some companies that will raise interest rates when the loan is not paid as originally scheduled. Don't be surprised if you find a lender that will charge both additional interest plus a special roll-over fee. Call payday companies directly to find a lender that prices payoff options fairly. Expect to pay interest on your loan... only.
-You will find lenders that charge over-the-top interest which are often ignored because the company promises loan amounts larger than what most direct lenders will offer. Oftentimes, this money has no waiting period. Ever read an advertisement for fast money, as in less than 15 minutes? These companies seek to do business with vulnerable customers willing to anything to get extra cash in their bank account. Be careful. It is important to never borrow more than you actually have to have. Just because a high dollar amount is offered, it doesn't mean you have to take it. Remember, for every hundred dollars that you borrow, you will pay interest fees. Spending money needlessly is never cost effective. Shop around for a company that doesn't make over-the-top promises. These kinds of transactions are expensive.
No one wants to be nickel and dimes to death. When it comes to payday loan predators, their nickels and dimes are often misunderstood and misrepresented landing borrowers in heavy debt. If you are skeptical about an offer, take that to heart and move onto another direct payday online lender. Your best defense is to talk to the company directly. Ask important questions and expect clear answers. In the end, it is your money, so make emergency payday loans as cost effective as possible to save in the long run.