If you’re in need of a cash loan quickly, then you may have considered taking a payday loan, otherwise known as a payday advance, payday cash advance or paycheck advance.
Many people look to payday loans because they are easier and quicker to qualify for than other types of traditional loans, however, they may or may not be the best option for everybody. Ask yourself 3 questions to help you better decide whether a payday loan is right for you:
1. What do I need the money for?
Why are you getting extra cash? Is it to pay some bills, help someone out, or just to go out? Is it necessary that you get this money or is it based on a whim? Weighing the reason why you would want to take out a payday loan will help you decide whether to get a payday loan or not.
2. What are the payday advance terms and conditions?
A payday loan is after all, a loan that has repayment terms including a due date, interest rates, and fees. Before getting a payday loan, understand what the loan’s interest rates are, when you have to pay it back, and what happens if you can’t repay on time like can you rollover and will you incur more fees? Knowing what the terms are will help you make a more informed decision.
3. Do I have any other alternatives?
If you’ve decided that you must have the money, ask yourself, do you have alternative options such as trusted friends and family that you can borrow from? If you have these types of resources it may be a quicker and easier way to get you the cash that you need, however, just because they are akin to you doesn’t mean that they wouldn’t expect you to pay them back. Another option would be a traditional personal loan or credit cards. However, if you have already sought after these options and were unsuccessful, don’t worry because you are not alone. The fact is traditional types of credit is getting tougher and is one the main reasons why people are looking to payday loans as an alternative.
Answering these 3 questions truly to understand your needs, urgency, options, and consequences are can help you make a better decision.