Yearly, borrowers turn to cash advance lenders in order to survive through an unexpected emergency or financial meltdown. Have you tried obtaining a payday loan or are you currently thinking of getting one? What important facts should you understand and how would you select the right payday loan lender?

What are payday loans?

Payday loans are quick unsecured loans which are usually payable within 1 month or by the next pay check. However, failing to pay back the loan by the due date can become a problem while you incur steep rates and fees. The extra charges can easily lead to debt build up until repayment becomes difficult.

While it is technically convenient to get a payday loan, borrowers should be very careful about the choices they make.  For instance, consumers should never rely on payday loans to pay other creditors.  Rather than take out a payday loan or a cash advance loan to pay another debt, negotiating or speaking with your creditor is a better solution.

Talk to your creditors to explain your situation.

Perhaps you can request for extension of your payment due date or an adjustment with your repayment term.  Most creditors are willing to modify their terms to help out a customer.

Alternative solutions

Before applying for a payday loan, consider if there are alternative solutions to your problem. For instance, do you have a friend or relative who is financially capable to assist you?  Do you personally know someone who might be willing to lend you the money you need?  If yes, you can surely ask for a much lower rate if you borrow from a personal contact.

If the payday loan lender is someone you personally know, make sure that the terms and conditions of the loan are stipulated in a contract.  By having a written agreement, misunderstandings or conflicts can be prevented, which may arise if both parties only rely on verbal agreement.

On the other hand, if you are confronted with an emergency and there is no other option but to acquire a payday loan, don’t rush and spend time doing research and comparison.

Consider the following tips on choosing the right payday loan lender:

Compare online.

You can find hundreds of payday loan lenders from the internet.  Comparing online can save you time and you will be able to check out reviews about the lending company as well.

Check the lender’s requirements.

Although no credit check is involved, the specific requirements may vary from one lender to another so it’s important to check the list before submitting your loan application.

Check the BBB.

You can also check the Better Business Bureau’s website to see the lending company’s rating and track record.  If there have been complaints or law suits filed against a particular lender, you can read about it from the BBB’s website as well.

Read the fine print.

Once you have found the right lender, read and understand the terms and conditions.  Make sure that the lender’s policies are in compliance with the lending laws of the State where the company obtained its license.