When you are living paycheck to paycheck, extra money is hard to find. You have enough to cover your bills and to get your basic needs covered but there is not much left over. If an emergency happens, you can find yourself in a bit of a bind. Car repairs, home repairs, medical bills and other sudden expenses can arise, and you may not have enough money to pay for it.
If you have bad credit or if your credit cards are maxed out, it puts you in a real dilemma. How can you get the extra cash that you need with bad credit? How can you get it quickly if you have no family to borrow from? That is where payday loans come in.
If you have a job but need money quickly, you can get a payday loan. They are quick and easy to get and you will be able to get the money that you need to cover the expenses that you need to cover, giving you some peace of mind. When you need money quickly, payday advances are your best option, especially if you have poor credit.
They are unsecured loans, so you do not have to have collateral nor do you have to have good credit; you just need to have a job. A payday advance is short-term loan. You need to pay the payday advance back quickly, usually by your next pay period. Your job is your collateral and you can take out a loan, the amount that you can take out depends on the place, usually between $300-1,000. It can be less than $300 or it can be more than $1,000; you will need to check with each payday advance company to see what they offer.
Payday Cash advances usually have very high interest rates; often the interest rates are over 100%. In addition to having high interest rates there are also going to be fees associated with the payday advance. Getting a payday advance is a good way to get emergency money quickly, but they can be expensive. Here are some tips for saving money on your payday advances.
#1 – Only use payday advances as a last resort. If it is not an urgent situation, do not get the payday advance. Because you will very likely have to pay the loan back within thirty days combined with the high interest rate and the fees that you will have to pay, payday advances should be your last resort to getting money.
If you are planning on using it for shopping money for things that you would like but do not need, skip getting a payday advance. When you need money for something that is an absolute necessity that is when you should get a payday loan. If you do not need to have it, then you do not need to use a payday advance to get it.
#2 – Only borrow the exact amount that you need. Before you go into the payday advance company to get the loan, know exactly how much you need to borrow and borrow only that amount. If you have a car repair bill of $350 then borrow no more than $400. If you have a $200 plumbing job that needs done, only borrow $200. Just because they are willing to lend you more than that does not mean you should borrow more than you need.
Keep in mind that the interest rate is very high and you will have fees tacked onto that interest as well. Borrowing more than you need means that you are going to have even more interest and your fees could be higher. It can also put you into a bind where you need to get another payday advance to cover the first one. That is not a cycle you want to be in. Never let any company talk you into borrowing more than what you need, and even though it is tempting, just say no.
#3 – Shop around for the best payday advance terms. Not all payday loan companies offer the same terms. No matter how badly you need the money, do your homework first. It is always recommended that you check with the Chamber of Commerce or the Better Business Bureau to see if there have been any complaints. Be especially wary of online only payday loans, while most are legitimate business, some are not so always take the time to check to see if they have been reported for fraud by others.
Interest rates can vary from company to company, as well as the fees. Check with several companies to see what the interest rate, fees and when you would have to pay the payday advance back. These can all be important factors for saving you money, especially on the interest and the fees. With interest rates that can be over 100%, you want to find the best terms. Some companies have special deals for first time customers such as no fees, or low interest rates for the first payday advance.
#4 – Check for coupons. Look through your local newspapers or coupon circulars to see if any local payday advance companies have coupons. They will often offer coupons to help bring in new business and they can help you save money.
#5 – Do not be afraid to negotiate. If you like a particular lender but they are offering terms that are just not favorable enough; ask them for terms that are more favorable. Asking never hurts and sometimes they are willing to work with you to give you terms that are more favorable, saving you money.
Payday advances are a good way to get money quickly. Face it, emergencies happen and being able to get the money that you need to handle the situation helps make the situation less anxious. Because they can be expensive, looking for ways to save on your payday advances is always recommended.