Why You Need to Do Your Research Before Applying for a Subprime Loan
Obviously, if you need cash in a hurry, you may be interested in a short term loan. However, it is also likely that because you're in a hurry, you won't take the time to properly compare your options. Not all payday advance loans are created equally, and it is vital that you do some research so that you get the best deal.
Some Tips to Find the Best Loan
You must always make sure that you know who you are borrowing from, and what kind of terms and conditions you are signing up to. Most guidelines will be reasonably similar, but there will be some exceptions. Look, specifically, for things like APRs, early repayment penalties and penalties for late payments, for instance.
There are quite a few things that you need to know about in order to get the best possible deal. This includes:
- The difference between direct lenders and non-direct lenders. Always try to find a direct lender if you can, as the non-direct one is a broker that will charge you (or the actual lender) fees for finding the loan. They are also more likely to charge you just to start searching, and to recommend you to the lender that will pay them the most, rather than giving you the best possible deal.
- Check your lender is properly licensed. This is a bit of a tricky one with payday lenders, because most states have now banned them from the high streets. However, this does not mean they don't have to stick to any rules anymore. One of the issues where they may be poorly regulated, however, is related to interest rates, which is one of the things that matter to you, as they will determine how much you actually pay.
- Make sure you understand exactly what you are paying, when you are paying and why you are paying. You may be desperate, but that is exactly what unsavory lenders are banking on. You don't have to agree to ridiculous terms and conditions just because you're desperate. There are many genuine payday lenders out there who offer deals that will actually help you out of a tricky situation, and they, like most other payday lenders, also pay out the same day. Hence, take your time to look for the right lender for your specific needs.
Nobody wants to be in financial difficulties and the reality is that we tend to be reactionary when we find ourselves in financial distress, instead of being proactive. This is very dangerous, as it increases the likelihood of you falling for a loan shark. You have to do yourself a favor and do as much research as you can, or you could end up in an even worse situation. A good idea would be to do this research now, when you're not in a real emergency situation. Then, if something goes wrong, you will already know where to go to for help.