For many years, payday lenders have been offering direct payday loans. However, recent changes in the lending industry have made direct payday loans less popular than ever before. It is the responsibility of the borrower to search for another alternative before making an agreement with a payday lender.
A number of payday lenders have chosen to offer their services online. You can compare loans and fees online before you make your decision about which lender to use. In addition, you may be able to apply online or fax your application to your lender. With online loan applications, the lender will send your application directly to the lender’s headquarters.
If you are seeking a payday loan, you should understand all the terms and conditions that apply to the loan you are considering. You should read the fine print before you agree to any agreement. The Federal Trade Commission requires most lenders to include a disclosure statement on the payday loan application, in addition to the form.
The disclosure statement lists the major requirements of the loan; the annual percentage rate, the closing costs, and the amount of time you will be expected to pay the loan off. Each lender will have different requirements.
Be sure to ask about the interest rates and other fees. It is not uncommon for lenders to charge extra fees, such as late payment fees, when the borrower does not pay the loan off as agreed.
Another point to consider is that, even though direct payday loans are usually short-term, if you need cash now, you may find yourself facing additional problems. Most lenders who offer direct payday loans do not lend out the money directly; instead, the money is deposited directly into your bank account.
If you want to use your paycheck to repay your payday loan, you should be aware that your bank account will be debited at the end of each pay period. Therefore, you should be sure to take out a loan when you really need it, instead of waiting until payday. This is because if you do not repay the loan, you may find yourself in default or being debited from your checking account.
Many people find that the fees charged by payday loans are more than they can afford. If you cannot repay the debt, you may find yourself in even worse financial trouble.
Of course, there are ways to avoid the high fees associated with direct payday loans. For example, you can pay off the loans with a debt consolidation loan, which does not require a credit check.
Still, even with the availability of online direct payday loans, it is still a good idea to seek the advice of a credit counselor before borrowing money. They can help you avoid the pitfalls associated with payday loans. Credit counselors can also advise you on how to make your own repayment plan.
To borrow money, it is important to research interest rates and fees, so that you know exactly what you are getting into. It is always best to get a pre-approval for a payday loan before making an agreement.
Lenders should clearly state their loan terms, and the penalties that may apply before a payday loan is issued. Before you agree to a payday loan, you should ask for copies of the documents that will be required, and ask about the fees and charges involved.