What to Look For in a Cash Advance Company
When you are looking to take out a payday loan or cash advance loan it is crucial that you first spend a little time finding information about the various payday lenders before deciding on a cash advance company to go with. There are a large number of lending agencies that offer these short term cash loans and the rates, terms and conditions vary greatly between companies. When taking out a payday loan you will not only want to find a company that is reputable but one that also offers the right loan product to suit your financial needs.
There is a lot of legislation surrounding the payday loan industry and the guidelines under which they operate will be largely determined by the jurisdiction in which the cash advance company operates. A reputable cash advance company will not only comply with these laws but also operate competitively within their industry.
A good cash advance company will tend to set a limit on the amount of money their customers can borrow at one time. In most cases these limits are set by state or federal agencies and are put in place to protect customers from borrowing beyond their means. A cash advance company may have a monetary limit on the amount that can be borrowed or the maximum amount may be determined by a customer’s monthly income. Either way you will need to carefully consider how much you can actually afford to repay from your next paycheck to avoid further financial stress.
Naturally, the fees that a cash advance company applies to their payday loan will be a determining factor when choosing a lender to go with. Since these loans are short term loans, generally two weeks to one month, the annual percentage rate is not a good indication of the actual cost of the loan as when expressed as an annual percentage rate these charges seem quite high. For this reason, a cash advance company will usually express their charges as an amount per every $100 borrowed. You can expect to pay anywhere from $15 up to $30 for every $100 that you borrow through a payday loan and with so many lenders offering these loans it is not difficult to find a cash advance company that will offer a competitive rate on the internet.
The other important aspect to consider when selecting a cash advance company through which to obtain your payday loan is the repayment terms that the company offers. Almost every cash advance company requires the loan to be repaid through you next month’s paycheck and at the time of applying for your loan you may be required to fill out a direct debit form that will enable transfer of the loan balance, including fees and charges, back to the lender thereby clearing your debt almost immediately. If you receive your paycheck on a weekly or fortnightly basis you may ask the lending agencies if they can negotiate on repayment terms to enable you to make weekly or fortnightly repayments, and this is something that may well be considered by the cash advance company so long as the balance is paid with a one month period.
Finding information about a cash advance company is easy with the help of the internet. Most companies offer their services online and so comparing lenders can be done without having to leave home. One thing that can’t be understated is the importance of shopping around for a cash advance company, as many of the fees and loan conditions can very somewhat. Alternatively, choose a site that will compare various lenders for you and one that will then offer you the perfect match for your needs.