When you run out of money before the end of the month, and you could not borrow any from your friends or family, who do you ask for help? These are the times when a payday loan seems tempting but you should know what it exactly means before you think about using the idea.
What are in-store payday loans?
These payday loans are all about taking a loan locally and keeping your paycheck as security in return. You provide the money lender with a post-dated cheque, so he can take the money back as soon as your payday arrives. If the loan is taken online, the lender can take the money from your account as soon as your employer pays you.
Repayment of cash loans near me
The lender is going to charge you for every $100, within a range of $10-$30 according to the consumer financial protection bureau, depending on your location. You need to pay back the full amount on the very day you get paid by your employer, in case you fail to do so, the date of repaying shifts to your next payday with an increase in the extra charges. Initially, the small amount turns to great value on the addition of more and more annual percentage rate (APR).
Find the nearest payday loan location in 3 steps
Here's a simple guide on how to find the nearby payday store location:
- Make sure that payday loans are allowed in your state and you might also want to find out what state regulations regarding the maximum loan amount, interest reate and cooldown period.
- Search online using any of the following keywords: "payday loans near me", "cash advance near me", "payday advance near me". Usually you would find the nearest lenders in your locaiton with adresses and local phone numbers.
- Spend some time to visit several local stores to compare terms and fees and start the application process at the store of your choice.
If such loans are prohibited in your state then you should search for an alternative, like installment loans or credit cards.
Are there any alternatives to local loan lenders?
Yes, there are alternatives to nearby payday loan stores. It is not possible to take traditional bank loans but there are other ways:
- A credit card can help you with your money crises with comparatively a lower interest rate if it is not maxed out. Also, you have 30 days to pay for your credit card balance before it incurs an interest.
- Online lenders including 24CashToday.com can help you get a loan ranging within $500-$3000. For some lenders you need 600 as a minimum credit score but they offer a lower APR within the range of 9.95% to 35.99% as compared to the 300-400% of the payday loans near you.
- You can join a credit union. They provide a payday alternative loan within a range of $200-$1000 for a time span of 6 months at an APR of ~28%.
- You can sell unused items online or earn credits or gift cards through various websites.
- You can delay paying some bills by talking to concerned authorities or you can save money on groceries and things that you buy on a monthly basis.
- You can look for local communities around you that help people on short term loans. The federal government also runs a program known as the low-income home energy assistance program (LIHEAP) allotting people an annual grant but you need to apply for it by the end of September. It doesn't work as an emergency option.
Can I go for a pawn loan?
You can go for it if you have any valuable item at home, but it is an expensive way as it has an APR of 200% and it provides a time length of 30 days. If you are unable to complete the payments (installments or any method suggested by the lender to repay the total amount) the lender will sell your valuable item, although if you fail to repay the loan, it won't affect your credit score.
Should I get an online loan instead?
There are several advantages of lending online instead of visiting a cash lender near you:
If you are not mobile, for example you have no car or it is broken then visitin local cash advance stores would be a problem. Also an online payday loan can be helpful if the nearest store location is far away. With online lender the complete process from application to funding can be done without leaving your home.
- Don't need cash immediately. Payday loans are used to cover an emergency expense, but if you can wait a day or two for processing with an online lender, it might be a better decision.
- You have already dealt with payday loans before and know what is involved in the proccess, what are the fees and repayment terms and conditions. In this case there is no need to visit a local payday loan store and waste time communicating with the loan agent.
Which loan alternative to choose?
If you are confused about the way you want to go for a loan, you can keep a few things in mind:
Building a credit.
Terms to repay the loan.
At the end of the day, you can always turn to family and friends. It won't do you any harm to tell your close ones about your financial crises, it is better than payday loans near me.