Is Getting Payday Loans Safe?

You suddenly find yourself in a financial predicament. You’re in need of money quickly – is an emergency loan, like a payday loan, your answer? A payday loan is a fast way to get a few hundred bucks to cover expenses until your next paycheck. They’re incredibly helpful in a stressful situation. If you’re interested in getting one, there are a few ways to ensure your application is safe and secure.

How do Payday Loans Work?

A payday loan is a type of very short-term loan, usually due in two weeks. They work for people who need cash urgently, perhaps after a medical emergency, car repairs, overdue rent – there are plenty of scenarios. People rely on a payday loan if they have poor credit or don’t have savings. Payday lenders will need to verify your income and bank account information to determine whether you are able to pay back the sum you-re about to borrow. You can stop by a payday lender’s office or apply online. Here are some tips to ensure your loan is safe.

Online

Is the business reputable?

A quick google search about the site can tell you its ratings on the Chamber of Commerce or Better Business Bureau (BBB). It may also highlight some reviews from previous customers that inform you of the process and safety of personal information.

A reputable lender will also have clear contact details on their website, perhaps even a physical address that you can visit.

Website security

The quickest way to ensure the lender’s site is secure is by checking the URL. If there’s an “HTTPS” at the beginning of the URL and a lock icon in the address bar, it shows your information is encrypted and protected from hackers.

In-person

Direct lender

A direct lender ensures your data is only viewed by one business, and you owe a debt to fewer people, meaning fewer lender fees to worry about.

Read the fine print

You may pay your debt through a check for a later date. For example, a $575 loan ($500 for the loan and $75 in fees) to be cashed two weeks from today. Ensure you have the correct amount by that date. If you don’t, you may have to pay extra fees to your bank and the lender.

Depending on the lender’s contract, you’ll need to pay lender fees on top of the loan when the due date comes around. If you’re unable to pay by the loan’s due date, you’ll accumulate extra charges. If you can’t repay the loan in full, you can request an extension on the due date, but that usually means another lender’s fees charge on top of the other payments. Requesting an extension can quickly put you in a cycle of relying on a quick loan that builds on itself.

That said, getting a payday loan can help you through a short financial squeeze, as long as you will definitely have the loan money and more before its due date.