Before applying for a payday:
- Do you really need the cash advance? Is the emergency/dilemma worth borrowing for?
- Can you borrow money elsewhere? Would a friend or relative be willing to help?
- Do you have bad credit? Often this doesn't matter in securing the payday loan...but could you be putting yourself into an even worse position?
- Most importantly, can you payback the payday loan in the amount of time alotted for repayment? Not paying the loan back could adversely affect your credit.
When you apply for a payday loan (cash advance):
- Do some research. Is the payday loan lender licensed?
- Ask around - Do you know anyone else who has dealt with the company? Are they trusted? Has anyone had problems?
- Read the cash advance contract thoroughly. Are there any hidden fees that might make the loan hard to pay off.
- Shop around- Payday loans with high APR are common. Where payday advances are allowed, competition between lenders can save you significant money and decrease debt.
- Do not hesitate to ask the cash advance loan lender to explain terms and conditions, and interest rates of the loan you are interested in.
- Pay off the loan as quick as possible - Try to pay off the payday loan when you receive your next paycheck