Shop Around
Payday loans are intended for emergencies.
Some predatory lenders take advantage of this by charging outrageous interest rates or including hidden fees. They know people suffering a time-sensitive financial crisis usually do not have time to shop around.
A small difference in fee, however, can mean a huge difference in total cost.
If you borrow $500 for 14 days, a $5 difference in fee will cost you:
$5 difference x 5 (the number of $100 loans) = extra $25/14 days
If something goes wrong and you can’t pay the loan off on your next paycheck:
$25 difference/14 days = $50 difference/month = $600 difference/year
A $5 difference in fee could mean a several hundred dollar difference in the total cost of the loan.
Other reasons to shop around when looking for cash advance loans are:
- some lenders do not disclose necessary information (fees, APR, contact information, etc.)
- some are not actual lenders (publisher/affiliate middlemen or harvesters of e-mail addresses/personal information)
- some lenders offer perks (first loan free, same day service, toll free phone or faxless transactions)
Recent Posts:
- 05/05/2009: CompareCashLoans.com Gets a Facelift
- 06/16/2008: Demographic Study of Online Payday Loan Consumers
- 05/26/2008: Daniel O’Sullivan
- 04/24/2008: Update: Payday Loan Laws that Hurt Consumers
- 04/07/2008: Manitoba Public Utilities Board
Random Posts:
- 08/06/2006: Leah Caldwell
- 11/29/2006: Payday Loan Checklist - Ten Things You Must Do Before Applying for an Online Payday Loan
- 12/30/2006: Patricia Davis
- 05/01/2007: Bill Clinton
- 08/05/2006: Mark Patton