Comparing payday lenders online can save you much time and cash. By comparing rates, commission charged, and repayment terms, you could find the best direct payday loan lender. According to state laws, payday lenders must publish their interest rates and commission so you could compare them.
Comparing Interest Rates
Direct lenders are obliged to disclose their interest rate or APR. In other words, they publish the lending interest rate for the entire year. Cash loans are designed to provide cash for a short period, often just until your next payday. But if you think you might need more time, you could adjust that with your lender.
Listed APRs let you make fast comparisons of lenders’ interest rates since all lenders must follow this requirement. With a fast check of the APRs, you could find cheaper interest rates. However, this is not the only thing to consider.
Identify Commission Rate
Fees are an alternative way payday lender make cash. They might appear in the type of an application or processing charge. Several payday lenders will waive this fee if you are their first time borrower. You can as well find lenders who don’t charge any commission. Such lenders often charge more in terms of interest rates.
Search for a lender that charges lowest fee. Fee could once in a while cost more than the interest rate charges. When searching for a payday loan company, be sure that the rates are also low.
Consider Other Things
You must also consider the convenience and ease of the application procedure and the minimum qualification criteria. There are two forms of online applications, fax and no faxing. Faxed applications usually require you to send the copies of your picture ID, a DL, previous bank statements, and paycheck stubs. A loan officer will then examine your application for loan approval. A no faxing application just requires you to complete an application online, which is verified through their databases. There is no credit score check involved and you could receive an almost instant approval.
Direct lenders also vary in their minimum qualification criteria. You perhaps need to have been regularly employed for 3 months. Other lenders just require you to have a steady income source, which can be a SSI or pension check. A few lenders check if you have any outstanding payments or payday loans with other lenders. Others just check if you have an open bank account. So before you sign up for your cash loan, check to see that you satisfy the conditions.