People all around the country have discovered the power of a payday loan. Also known as a cash advance, this type of personal loan is geared to meet short term needs for a wide range of borrowers. However, with so many online payday loan options, it can be hard to know which lender to rely on.
To help figure it out, here are five things to look for in a payday loan company.
Each payday loan company will add some form of fee to their loans, just like conventional loans will always have an interest rate. The fees for a payday loan, however, tend to be a simpler charge related to the amount being borrowed. So when weighing which lender to use, it is a good idea to see what their charge is. Some companies may charge 30 dollars for every hundred being borrowed. In this way, a 300 dollar loan would carry a 90 dollar fee. If the charge is 40 dollars for every hundred, that fee goes up to 120 dollars.
Any quality payday loan company will have a variety of safety measures in place to protect their clients. Since payday loans require the borrower to submit sensitive personal and financial data online, it is essential that the company has updated online security features, including progressive encryption programs. With this kind of protection in place, borrowers can have confidence that their information is safe from hackers and other nefarious online characters.
A good payday loan company will also provide borrowers with flexibility should they need to refinance their loan. Though it is always best to pay off a cash advance on time, that is not always possible. This is why it is important for borrowers to know what the company’s policy is on refinancing to extend the loan. Borrowers should be aware of how long the loan can be extended, when an extension can be requested, what interest rate will be set, and what other hidden fees may be associated with refinancing. Each company will have a different policy, and finding one with good flexibility can definitely pay off in the long run.
Most people who utilize payday loans rely on them for their timeliness. Because of this, borrowers should always consider the speed offered by a payday loan company. The industry standard with cash advances is two business days, but that can vary depending on several factors. Some companies may have to extend that time if they require extra information not provided on the application form. These unexpected delays can be quite problematic for borrowers, so it is important to see what the company’s policy is regarding the turnaround time. Also, it is good to note that many companies can now offer money even faster, using the power of the internet to provide instant approval and same day processing.
5. Customer satisfaction.
The last major factor to consider when weighing a payday loan company is overall customer satisfaction. It is a good idea to look into the company a little bit and read some reviews from other borrowers. If other borrowers have consistently had problems with any given company, then it may be wise to reconsider utilizing that company for any short term money needs. Overall, there are many options for cash advance loans, so there is no need to take out a short term loan that does not meet the given needs.
These five characteristics make it easy to determine which payday loan company to trust, which is a critical step to ensuring that the loan process is safe, fast, and worthwhile.