Payday loans refer to a short-term loan that is required to be paid back within 62 days only. The maximum amount that you can borrow in most payday lenders is $1,500. Here are the following tips to ensure the success of your payday lending.
Make sure that your payday lender is licensed. The worst thing you could ever get yourself into is borrowing money from an unlicensed payday lender. They can strip off your money and leave you in a difficult financial situation. Therefore, if you are already talking to a payday lender right now, you should make sure to check if he is licensed or not by the Consumer Protection BC. There are various websites that give you a list of licensed payday lenders as a starting guide. Those located in Norway can use this to compare loans, rates, and other information about lenders to ensure that they are dealing with only reputable consumer loan providers, not loan sharks.
Make sure it’s a payday loan you are applying into
There are some scammers that might trick you into getting yourself in a different kind of loan and you must avoid it at all cost. Always remember that the characteristics of a payday loan are that you are only allowed to borrow $1,500 or less and you are required to pay it back in your payday which is mostly within 62 days. Aside from that, it is an unsecured loan that does not use any of your property such as house or vehicle as collateral. Be mindful on whom and what you are transacting into.
Choose the best rate
Different payday lenders also offer different rates and terms. Make sure that you look around to find the best yet affordable deal for you. Always remember that the highest rate they could charge is $17 for every $100 that you are going to borrow. It will include all fees such as interest and admin fees that you have to pay. As much as possible, choose a payday lender that will charge less compared to other loaners. They only have the right to charge you more than the agreed rate if you have failed to pay on due time. Check out their posters for the interest rates that they tend to offer to their borrowers.
Always know your rights
When you tend to enter the loan, before finally signing, you should make sure that know all your rights. Read the payday loan agreement thoroughly, it should include all the terms and conditions, policies, and charges that you’ve both agreed.
You are also allowed to cancel your agreement the day before you start the loan without ever having to pay penalty charges and if you are able to repay the debt any time before the due date, the payday lender will have no right to charge you with any penalty.
Follow these tips so that you can protect yourself and your money when entering payday loans. If it’s your first time entering a loan, you should make sure that you are able to do this properly because it will reflect on your credit history so that it will be easier for you to apply for other loans in the future.