Payday advances and other short-term cash advances are at the tip of every consumer’s fingers at any given time. A person can complete a short online form and have hundreds of dollars in his or her hands within an hour. The lending industry has come a long way since the days of making borrowers wait up to two weeks for an answer. Currently, there are thousands of payday lenders across the United States. How does a consumer know how to choose a reliable lender amongst so many? He or she would have to search for one that possess the qualities of a reliable firm. The following are the top qualities to look for in a payday lender:
Reputation is one of the strongest qualities of a reliable payday lender. A reliable lender will have a multitude of positive feedback from its current and former clients. Other consumers will be willing to spread the word about such a provider. An interested person might find testimonials and comments on the lender’s website that validate its glowing reputation.
Honesty and Transparency
An honest payday lender will be completely transparent about all aspects of the lending process. For example, a prospective customer will find information on fees and finance charges on the website of such an establishment. This type of provider cares about being honest with its potential customers because honesty is honorable. A firm that has this quality is definitely worth reviewing.
Elite Customer Service
Elite customer service is something that every prime lender should offer. It involves having friendly staff members who go out of their way to ensure that the customer has a pleasant experience. These people will answer telephone calls and emails in a timely fashion. They will explain parts of the process that a customer may not understand. Furthermore, they will do their best to help each customer gain approval for an advance.
The best way to tell a poor payday lender from an honorable payday lender is in the cost of the advance. A 300 percent annual percentage rate is the average for a payday advance. Therefore, anything over that amount may be robbery, and anything under that amount may be honorable. A consumer has a multitude of choices, so that person has time to shop around for advances.
A reliable payday lender will be fast, friendly and efficient. Such an establishment can offer a borrower an advance within 24 hours.
Approximately 80 percent of American consumers are eligible to borrow payday loans. Payday loans are short-term cash advances that lenders give borrowers until they have their next payday. A payday advance has an extremely short life span of approximately 14 days. The interest rate for such a loan product can go beyond that of a normal advance. Therefore, a person should only use payday loans for crucial tasks. Borrowing this type of loan for a frivolous purchase is not recommended. Payday advances are best when used for situations such as:
A vehicle breakdown is an extremely inconvenient incident that can deprive someone of mobility. It could prevent a person from getting to work or performing other key daily tasks. An unforeseen vehicle breakdown will require an immediate repair. The consumer may have to rent a vehicle while the other vehicle is in the shop, as well. Therefore, a payday loan is acceptable in this condition. The borrower can take care of the repair priority and then repay the lender on payday.
Sometimes, household bills become backed up so badly that a utility company issues a disconnect date. The situation may occur because of a change in household status, a lost job, or a case of poor memory and planning. If the disconnect date falls in between paychecks, then a payday loan would make sense for the predicament. In such a case, paying extra fees to borrow cash is worth it to keep the utilities on.
An important purchase could be any date-sensitive or required purchase. For example, a high school senior may need to purchase his cap and gown before a certain date so that he can graduate. A new employee may be required to purchase special non-slip shoes or attire for work. A person who goes to school or works primarily online may need to purchase a new computer if the current one breaks. Important purchases cannot wait until payday. Therefore, payday loans are the answer.
Consumers should reconsider using payday advances for shopping sprees and vacations. Borrowers are certainly permitted to do such. However, such borrowers should make sure that repayment is well within their means. People should never borrow payday loans to pay other payday loans. Such a transaction will end up hurting the consumers in the end. Payday loan borrowing should be responsible and wise.