Payday loans are short term solutions for emergency situations. According to the Pew Charitable Trust, about 12 million Americans take out a payday loan every year. The borrowers are normally those who can’t make ends meet. But if someone does decide to take out a loan, then they should look at companies who report to the major credit bureaus. Another thing to consider is that some states have laws against these loans. In parts of the Northeast and the South, payday loans are not legal.
When considering these loans, you must see if you want an in-store loan or an online loan. In-store loans you get the money immediately, where as online loans can take up to two business days before being deposited in your banking account. There is also a cap on the loan amount as well as accompanying fees.
APR rates vary as well. Some payday lenders average over 400%. You could be charged, depending on the company, $10 to $30 for every $100 you borrow. These loans have high fees, but the application process tends to be quick and easy.
Here are some companies to consider:
Loans has high reviews by thier customers. This company is available in 38 states. Their APR range is from 59 to 199%.The company strives to make the lending process as simple as possible for borrowers. This company also has longer repayment terms than traditional payday loan companies.
The apllication process is quick and you can be approved in about five minutes. This companies rates are the same or lower than other companies. Their loans are available in 28 states.
Company that is widely available in 32 states. You’ll have to be aware of rate caps. There are some states where loans don’t have caps on rates. They also have reasonable fees for a payday lender.
One of the perks about in-store companies is getting the money faster. But it only has store locations in 23 states.
There are many payday loan companies in the US. The borrower must do their research before applying for a payday loan. Also watch out for lenders who claim they have the same fee no matter which state you live in. Avoid these types of lenders since they are less reputable. Another safe tip when going with online lenders, is to go with the lenders who ask which state you live in. Watch out for lending companies that offer to connect you with lending partners; it could cause you to get unsolicited calls and emails about offers. Make sure you are aware that payday loans are illegal in 20 states and that the states that they are legal have varying regulations governing the loans.