First Payday Loan Must Knows


1. The first thing you must know and understand about your first payday loan or cash advance is your own motivation for obtaining one. Knowing and understanding this one point will go a long ways towards making sure your first experience is a positive one. Another way of looking at it is to ask yourself- "What is having an additional $150 - $1,000 an hour from now, by tomorrow, or by the next business day going to do for me?"

Will it keep you from incurring other more costly expenses? For example- I once bounced four checks for school lunches, at $7.50 a piece, which cost me $30 each in NSF charges. Can you say OUCH? If I would have had an additional $30 in my bank account, I could have avoided $120 in bank fees. What's the APR on that, Bankers? So you know, I just went online and used the advanced option to calculate the APR on efunda.com. Ready for this?142,020.00% APR! That's right, one hundred forty two thousand and twenty percent APR. I'm left wondering how much lobbying the banks are doing to keep people safe from the bad payday lenders and why...

Will it keep you or someone you love out of harm's way? I once drove 500 miles, and crossed three states to get someone I greatly cared for out of a negative situation. Fortunately, at that time I had the money for the trip. But what if I didn't? These are just two, of many, life experiences in which a payday loan or cash advance would have made a lot of sense. I have also borrowed money before for reasons that didn't make sense. Only you can decide if your motivation for wanting the loan outweighs the cost of getting the loan.

The Other 7 Must Knows for Payday Loan First Timers


2. A payday loan or cash advance is generally a loan for 60 days or less and designed to coincide with your next pay date. In almost all instances, you can pay the loan back with interest or fees in a single payment on your next pay date. That's why they're called "payday loans".

3. If you can't pay it back on your next pay date, most often you are allowed to just pay the interest or fee and roll the loan over until your following pay date.Then you can pay the loan off in full with another interest charge or fees. See a pattern here? Any lender would be very happy if you did this every payday! Forever! But it wouldn't be good for your pocketbook! Look at how much the fees are when they are disclosed to you by your lender. Ask yourself honestly how long it's going to take you to pay the loan back, and decide if the cost is worth it for your circumstances. Typically the lending sources displayed on this website will charge between $7 and $30 per $100 borrowed. If you are paid monthly and paid the loan back at the end of 30 days, depending on your lender and your geographic location, that would be an APR range of 84.00% to 360.00%

4. Only enter your information on a secure form when getting a loan online.You'll see https:// in your web browser. If you don't see that, don't fill out the form. It's that simple. When you do enter it, make sure your information is complete and accurate. If the form asks for a home and work number, give them both! The more complete and accurate your application, the better terms you'll receive.

5. Make sure the website that you're on shows a security seal, such as one from Symantec/Norton/Verisign, or McAfee, or one of the other reputable companies you may recognize. Click on the seal displayed. When clicked on, it should take you to a verification page. See that the website's name matches the security certificate.

6. Make sure the loan terms and fees have been disclosed by the lender, read, and understood by you prior to your accepting the loan and giving your electronic signature. If you have questions, ask and get answers before you sign!

7. Collect the contact information for the lender; including web address, mailing address, and phone number.

8. Borrow only as much money as you can afford to repay on the repayment date(s). Know when each payment is due and make sure you have enough money in your bank account on the payment due date(s) to ensure that your check or electronic fund transfer clears your account.