3 Questions To Ask Before Taking A Payday Loan

Posted on: 27 February 2017

Getting cash fast is not easy to do if you have bad credit, but you can get cash quickly by taking a payday loan. These loans are not only fast, but they are also easy to get and are great for emergency expenses. If you really need money and have no other way to get it, you should look into a payday loan. When you do, be sure to ask the lender the following three questions.

How much will the proceeds be?

When you borrow money with a payday loan, you must request a certain amount. You will not get the full amount, though, because the lender will charge you fees that come out of the proceeds. The fees vary, but they will always decrease the proceeds. Typically, the lenders will charge between $15 to $30 per each $100 that you borrow.

For example, if you borrow $500, the fees may range from $75 to $150. If you need $500 cash in your hand, you may need to apply for a $600 or $700 loan.

When will it be due?

The second question you must ask is when the balance will be due. Payday lenders may give a week or longer to pay off these debts. If you know you will not be able to pay it off within a week or two, ask the lender if you can get a longer due date. If the lender agrees, you will have more time to repay the loan.

Can it be rolled over?

The other question you should ask involves rolling over the loan, and this is important if you do not think you will be able to repay the loan in full by the due date. Most payday lenders are willing to extend the due dates of payday loans by rolling them over. Rolling over a loan will simply extend the loan to a due date that might be a few weeks longer than the original one.

If the lender tells you that they offer rollovers, you may want to find out ahead of time if there will be fees. In most cases, there are fees involved with rolling over a payday loan; however, the amount of the fees can vary.

Payday loans are very unique loans that are great for all types of emergencies. If you need cash now and cannot figure out another way to get it, apply for a payday loan like Payday Express.