If you are in need of some extra cash, then the best payday loans may be the answer. The problem is that these types of loans can be difficult to get and they are also expensive.
The good news is that it is possible to make payday loans work for you instead of against you.
To begin with, let’s look at how a payday loan works. Essentially, you borrow money from your bank or credit union on short notice. Then, when you have no other means of paying back the loan, you pay them back at the end of the month.
In this way, you do not build up any debt. It is only the lender who gets paid back first, but they usually have an arrangement where they will give you more time if you have trouble paying them back.
There are several different ways to obtain a payday loan. First, there are many online best payday loans. These lenders operate out of the web and charge fees as high as 500 percent APR (annual percentage rate). They will also require collateral, which makes them hard to use for those without assets.
Second, there are storefront payday lenders. These lenders are located in many small towns across America, and they often offer lower interest rates than their online counterparts, but they are much harder to find.
Finally, there are pawn shops. Pawn shops typically charge around 25 percent interest on the loan. However, because of the large amount of people looking to turn over their possessions, the stores tend to offer extremely low rates compared to other options.
Let’s take a quick look at each of these options, and see if we can come up with some alternatives.
Online Payday Lenders
First off, I want to say that I have never heard of anyone getting a payday loan from an online lender. In fact, I have never even heard of anyone borrowing less than $100 from one. Usually, they range between $300 and $1,000. These amounts are just too high.
However, there are two online lenders that offer very competitive rates. One of these is FastCashLoans.com. They charge about 35 percent interest per year, but the maximum amount that you can borrow is just under $500. While this is still very steep, it is far better than most other payday lenders out there.
Another option is Cash Advance USA. This company charges about 30 percent per year on your loan, but you can borrow up to $600. Once again, this is still pretty steep, but it is much better than most other online payday lenders.
While it is possible to get a payday loan from an online lender, I would strongly recommend against doing so. Not only are they extremely expensive, but you cannot trust them as much as you could someone working directly from a storefront.
Storefront Payday Lenders
As previously mentioned, storefront payday lenders are located all across America. Many of these companies are part of chain operations. If you walk into a particular location, you may hear a lot of the same advertisements coming from speakers throughout the store.
Because of this, these locations can feel like they are under the same roof. There are actually websites that allow you to search for storefront payday lenders near you by zip code.
One example of a storefront payday lender is CashMax. They charge about 15 percent per year on your loan, but they only offer up to $500. Again, this is still a bit steep, but it is significantly cheaper than most other storefront payday lenders.
Like I said before, pawn shops are great places to go if you are looking to sell something. However, because of the way that interest is calculated, you should avoid using them to get a payday loan.
Typically, you will be charged somewhere between 25 and 50 percent APR. That is simply not worth it. Also, the process of selling items to pawn shops is quite complicated, and you may run into issues if you try to pawn things that are difficult to sell.
For instance, if you have valuable jewelry, you may not be able to sell it easily. The same thing goes for collectibles, antiques, and art.
Payday options are many with the ones lending you some rate of interest some offers you different rate of interest and different money margins to be lent so you must select the one which is best suitable for you. Remember they give a lot of greed in taking loans but you must select the suitable one for you.
Payday loans are a great way to quickly access some extra cash. However, they can often be extremely expensive. Fortunately, there are alternative lenders out there that can provide you with some additional cash without charging outrageous fees.
I hope that this article has helped you learn more about payday loans and how you can make them work for you. If you are in need of extra cash right now, you should definitely check out the resources below.