Did you know in the U.S., there are almost 30% more payday loan lenders than McDonald’s branches?
That’s because there are now more than 20,000 payday loan facilities in the country. As for McDonald’s branches, there are only a little over 14,000.
For the three-fifths of Americans who have less than $1,000 in savings, this can be good news. After all, payday loans, with their easier approval process, can help them get by until the next payday.
But with so many lenders out there, how can one choose the best payday loans? How can you make sure a lender is reputable and will get you your needed cash ASAP?
Keep reading then, as this post will answer all these questions and more!
Look at Customer Service Support Options
The best online payday loans are those from lenders you can easily contact, whether by phone or email. Some even have chat support, which is useful if you need answers about getting a loan right away.
Before you apply for a payday loan, contact the lender through phone, email, and chat. Gauge how fast they respond to your inquiries. If it takes them a long time to reply, take that as a sign you may encounter similar issues in the long run.
What you want is a payday lender who’s quick to answer questions, even if you aren’t an actual customer yet. Aside from being prompt, they also give honest and concise answers. This is especially true for questions about interest rates and any other charges or fees.
Check for Detailed List of Fees and Charges
Speaking of “other charges”, make sure the loan terms and conditions outline them all! First, because only the best payday lenders are transparent about such fees.
You’ll find details on late payment fees and prepayment penalties on their website. If you choose to “roll over” your loan, the best lenders will also tell you right away about any surcharges of doing so. They’ll also tell you how much the monthly and annual interest rates of their loans are.
Read as Many Reviews on Payday Lenders and their Products
Bad customer experiences get shared twice more than positive experiences. That’s why you’ll find the World Wide Web filled with (mostly) negative consumer reviews.
It’s thanks to these reviews that you can avoid potential payday loan scams. You can also use them as a guide to finding the top online payday loans.
By reading unbiased payday loan reviews, you’ll find out which lenders are reputable. You’ll learn which ones offer reasonable interest rates from those with excessive rates. You can even find out which online payday loan sites offer grace periods on their contracts.
Check for Loan Offers for People with Bad or No Credit
As of April 2018, 19.1% of U.S. consumers with FICO scores had a credit rating of less than 600. Those with scores below 579 are already classified as “poor” credit score holders.
If you’re one of these individuals, it’s likely you’ll have a hard time getting a lender to say yes to your loan. That’s why you want to raise and protect your credit record from further drops. You can do so by always paying off your loans and credit card debt on time.
If you need to take out a loan now and are afraid to get rejected, apply for a bad credit payday loan. These are loans specifically made for folks with bad or poor credit scores.
The best payday lenders understand how hard it is for people with bad credit scores to secure a loan. That’s why they offer higher approval rates to these consumers.
The Best Lenders Offer No Credit Check Loans
Speaking of a bad credit score, a study found that this is the reason 76% of personal loan applicants got denied. That’s how big the effect of poor credit rating is.
Luckily, lenders of top payday loans don’t prioritize looking into your credit history. Also, payday loans don’t affect credit rating, as lenders don’t conduct a “hard check”. They only carry out a soft check on their applicant’s credit history.
So long as you apply for a no credit check loan, you can worry less about your application getting denied. If you can prove that you have the ability to pay back that new loan, you have higher chances of securing the loan.
Compare the Interest Rates of Your Loan Options
Payday loans are short-term loans, hence the higher interest rates than traditional loans. But so long as you pay them off on or before the due date, then you don’t have to worry about being stuck in debt. You’ll only pay for interest charges once throughout the life of your loan.
What’s more important though is to ensure you’re getting the lowest possible rate. Interest rates vary from lender to lender, so compare as many offers as you can. Even a 1% difference in interest rates can already be considerable.
Ensure the Lender’s Website Implements Cyber Security Measures
Before you enter any personal information online, check the website’s cybersecurity first. It should have a logo certifying and verifying it’s a safe and secure website. In fact, if you use Google, it’ll tell you if a site isn’t secure.
Granted, this is something you should look for in all websites you visit. But it’s even more important for sites where you enter your financial information. That’s because financial services firms are 300 times more prone to cybersecurity attacks.
The Best Payday Loans Have a Grace Period
One last thing that makes for the best payday loan site: its implementation of a grace period. It’s best you get a loan with a grace period so that you don’t incur extra charges in case you can’t pay on the due date. Make sure you pay up during this grace period though, or you may have to pay even more for interest and penalties!
Apply for the Best Payday Loan Now
Whether you’re facing an emergency expense or a utility bill is almost due, the best payday loans can help you get by. You can get approved the same day and get the loan money in as little as 24 hours. Some of the best lenders can even wire you the money the same day you apply!
Just make sure you follow all these tips to get a loan from the best payday lenders though. This way, you can rest assured that you’re dealing with a legit and reputable payday loan company.
Looking for more financial tips, including managing your current (and future) debts? If so, then check out this list of the best debt management webinars and seminars!