Most people go for online payday loans when they need money fast. Most of the websites that offer these loans try to trick you or trap you in paying a very big amount of interest. Here are some ways by which you can outsmart these online payday loan lenders. When you are in need of money instantly and don’t even have a week to wait, these kinds of loans can come in handy. These loans are also called payday advances or cash advances. But the borrowers of such types of loans are facing a lot of trouble due to that.
The good thing about payday loans is that application for such kind of loans rarely needs a credit check. The approval and dispatch of money is also very fast with no paperwork most of the time, or any down payment and also no collateral. All these make it a very good option but wait till you read the bad things about the payday loans. The negative side of the payday loans comprises of huge to very hefty rates of interest. The language in the agreement is often confusing which hides the true cost of the loan. Sometimes, the lenders also charge up to six hundred percent annual interest on the principal amount.
This is why it is very important to take an informed decision when you are going for a payday loan. Some websites don’t show the fees and the rate of interest on the websites till you commit to them. Avoid such fraudulent websites. Legally, the payday loan lenders are supposed to provide you with all the information required such as the fees they charge, the rate of interest, penalties and the late fees and so on. If all these things don’t show up on the website, then it is best you leave it and search again. Some of the websites offer no interest loans for people who are borrowing first time from them. This is a very good option but you need to be careful of the due dates in such cases. Even if you pay a day late, these payday loan companies will charge you a very hefty amount as late fees.
The real purpose of the payday loan is to help you out with a situation which is short term. It should be for a few days or a maximum of a couple of weeks. It would only benefit the lenders if you prolong the payback date of your loan. If you keep on pushing the payback date, the interest gets added up and gets accrued. You should know the exact amount they will charge you as late payment fee.
Beating these online payday loan lenders is not easy but also not impossible. You should always take advantage of the no-interest schemes they have for the new customers when you are a hundred percent sure that you will not default on the time of payment. Follow these tips and make sure you stay out of the trap of these vicious lenders.