10 things you must consider before taking
cash advances and payday loans

What should you check out when you compare various cash advance companies? Making smart choices about payday loans depends on the spadework you do before you close a deal with a lender.

What you must look into may not be obvious; especially the first time you apply for cash advances. This guide is based on real-life experiences and can help you with the facts about payday loan deals.

The cash advances checklist

To make an intelligent decision about cash advances, use this checklist as a handy guide. Your situation may vary, so be sure to consult with a competent professional for assistance about payday loans and for help with your financial situation, if need be.

  1. First thing to consider - do you really need them? The FTC calls them "costly cash". This is quite true - APRs (Annual Percentage Rates) are usually very high at 300% - 1000%. So ask yourself if there are there other sources of funds you can tap into for your immediate needs. Such as an advance from your employer, from a local credit union, or a loan from family or friends. Even borrowing on a credit card, while expensive, usually costs far less than payday loans. See this page on payday loan alternatives for more information.
  2. Shop around for the lowest possible APR on cash advances. Check out payday lenders both online and off. The competition online is intense, so you may get somewhat better deals if you do your homework. Be sure to compare apples to apples - many companies quote a rate like $ 10 per week per $ 100 loan amount. Convert this into an APR - you'll pay $ 521.43 in interest per year on $ 100, which means an APR of 521.43%. And don't forget to compare any other fees and costs involved too.
  3. Know exactly how much you will pay for your cash advance, both when you pay on due date and if you roll over the loan. Apart from payday loan charges, you may have to add on $ 5 to $ 30 in application fees, wire transfer fees and more. Insist on knowing the exact amount you will owe.
  4. Read the contract very carefully. If anything makes you uncomfortable, ask all the questions you need to before signing a payday advances contract. Show the document to others, and even a lawyer if need be. Some lenders try to rush you through the process so that you don't have a chance to read the fine print. Don't fall for this tactic; let them know you'll take the time to examine the contract before you commit to taking payday loans.

  5. Can you repay the cashadvance on the next payday - and still have enough cash left over to carry you through till the payday after that? If you don't, you'll be forced to roll over the loan. That's very expensive - APRs will shoot up, and if you continue to roll over, you could even be headed for a debt crisis. If you're not sure whether you can repay, explore other alternatives to payday loans. It's worth repeating - borrow only as much as you can repay on due date. 
  6. In general, the longer the duration of the cash advance, the higher the APR. So in addition to borrowing the minimum possible amount, take care to keep the repayment date as short as is feasible. Make sure your agreement states the exact duration. And then repay on due date.
  7. Run a check with the Better Business Bureau (including BBB Online) or local Chamber of Commerce to find out more about the lender's reputation. If you find complaints about their conduct, look around for other sources for cash advances. As the buyer, you have every right to gather facts about pay day loan companies you're considering doing business with.
  8. If you're dealing with an online cash advances provider, make sure the page where you input your details is secure. Look at the URL in your browser's address bar - the address should begin with:- Note the "s" after "http", which means it's a secure page. Most payday loan providers do use secure servers.
  9. While dealing with an online cash advances company, ensure that they have full contact details including a working phone number on the site. Give them a call and ask a question or two about their payday loans to see how they respond.
  10. Ensure that the online cash advances lender will give you a complete breakdown of all applicable charges and fees before you input your personal data. Call them up to verify such details before you proceed with the application. Print out all relevant details from the website and read carefully.

Cash advances may not be the best solution for your immediate needs. But if you do decide to go that route, you may get a better deal if you think through and implement the steps above.

If your situation calls for utilizing payday loans, we recommend the company listed below. They are known to provide good service and have relatively lower rates as compared to many others.  

You can get cash in your account in one hour
If you're taking a cash advance, you probably want cash right now, without delays. That's why we recommend a company called We Give Cash. They'll wire you money in one hour. (That's during office hours; if you apply in the evening, you could get cash early next morning). They offer an excellent combination of fast response and relatively low costs. Do check them out. Click Here to get a $500 cash advance wired to you in one hour.

Make intelligent decisions about cash advances & wealth management.

Please note that does not provide finance of any kind. We basically provide information about payday loans that may help you make better decisions. Be sure to review the terms of use for this site.



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