subject: Pick A Good Lender, Avoid The Scams [print this page] Have you ever had your car break down in the middle of the work week? Have you ever had your furnace go out in the dead of winter?
Or maybe you need to get medical treatment but can't pay for it up front and therefore have to wait? Or what about getting a bill that is due before your next paycheck? These are all situations that Americans find themselves in every day. The hard part of it, is that most people do not have adequate savings to fall back on.
You can always use a credit card, but how often do you pay it back immediately? At times we all fall into a predicament where we need extra money because of an unexpected emergency. You can't always ask friends or family for money because first of all, it is embarrassing and second of all, they might not want to lend you money in the first place! So what do you do?
Payday loan provider's most valuable asset today is the trust of the consumers they serve. When shopping for a payday loan provider, many folks base their selection upon reviewing the testimonials of previously satisfied payday loan consumers.
When one thinks of payday loans or cash advances, one of the several definitions that come to mind, is that of a single, one-time anonymous cash transaction in order to resolve an immediate problem. A transaction never to be repeated or thought of, once it has been repaid
This may have been the case years ago, when payday loans were first introduced, the economy was in a more stable state, there was less fluctuation with interest rates, and it seemed just a little easier to cover all but the most expensive financial emergencies.
Add to that, that regulation of payday loans and cash advances was also in its infancy, consumers weren't as well protected from hidden fees and exorbitant payday loan processing fees if they unknowingly went with an unscrupulous provider.
As a result, a payday loan was only considered as a drastic and sometimes expensive measure to be used only if absolutely necessary. Payday loans were rarely discussed and the general trust level was poor.
Today's economy is the complete opposite of yesterdays. More and more good people are being caught unawares by escalating finance charges, an unstable economy, and the general changeability of life today.
Everything is more expensive nowadays, and if an unexpected event occurs, it's not nearly as easy for most people to pay for it.
It's all too easy to fall into an endless cycle of "Robbing Peter to Pay Paul", and because many people are struggling, so are their credit ratings which hinder their ability to apply for a traditional loan.
You can get yourself a payday loan but you can't just walk into any payday loan store. There are lenders that want to take advantage of you. Here are some signs you can look for that will warn you to stay away.
First off, the lender will want to make your deal quick. He is not satisfied to answer your questions thoroughly and let you decide if it is the right thing for you. The lender being too vague in answering your questions is another red flag.
Don't expect questions to be answered. Lenders don't like to answer questions directly. They "beat around the bush." By the time you leave you will be more confused than when you first arrived.
The lender can be too pushy and/or aggressive. Lenders will make you believe that a payday loan is the ONLY answer to your financial problems. They practically shove the pen down your throat to sign the papers and make it final.
If the lender charges more than around $10-$15 per every $100 borrowed, that is exorbitant and charging too high of fees is actually illegal! Make sure the lender has a license and check with authorities about that lender. Many people have been scammed getting payday loans through private lenders.
Remember, payday loan lenders have to make money someway and that way is through you. YOU are the one in control - not the lender! Do your research and find a reputable lender. One who has been in business for at least five years is a good place to start.
You can also check the Better Business Bureau to find out if they are members, first of all, and if they have any complaints against them.
