legitimate payday loans

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With so many payday locations out there and the ease with which you can secure payday loans, even same-day cash loans, consumers often wonder how to identify reputable payday lenders. You have most likely listened to news reports of consumers paying exorbitant fees after taking out payday loans. Others who cannot pay the borrowed money back on time continue to pay rollover fees and high interests months and even years after incurring the payday loan debt.


Though such stories have brought bad media to the payday industry as a whole, it is still possible to obtain legitimate fast payday loans. However, keep in mind that "legitimate" does not equal "low rates" or "no fees." The interest on a payday loan is always much higher than what you would pay if you chose to go the conventional route. Fortunately, you can take precautions when looking for a reputable payday lender.


1. Be Wary of Companies That Don't Request Information. Payday businesses operating legally will want to ensure that you can repay the money. They are in the business to make money. A company that does not ask for proof of employment may have ulterior motives, such as stealing your personal information or emptying your bank account.

2. Exercise Caution if a Company Offers Extremely Low Rates. Occasionally, a company may offer no-interest or fee-free payday loans to attract customers. However, they may not openly disclose the consequences if you fail to pay the money back on time. Such companies often rely on consumers failing to repay the loan in a timely manner, which results in extremely high fees and interest rates.

3. Apply at Secured Sites. Legitimate cash advance companies protect their customer's personal information. Verify the site's safety before entering any data. The URL should start with "https." 

4. Consider the following factors when applying for a payday loan:

  • Make sure you understand how much you’ll be paying in fees, interest and what the total amount will be.
  • Make sure the lender has a current state permit. The permit should be visible to all customers.
  • Make sure that there are no fraud reports or complaints against the lender. Check with the Better Business Bureau. You can also conduct an online search.

Overall, you can find legitimate payday loans or cash advances if you don't rush into applying for one. You may find it advantageous to make a checklist of things to look for when looking for legitimate payday lenders. Prior to submitting any personal data, go through your list and make sure that the website or company meets the legal requirements.

Since State Law varies when it comes to the payday industry, find out your state's requirements. You may find a wealth of information online at the National Consumer Law Center's website.


Copyright © 2011 Ana Jackson. All Rights Reserved. Reproduction in whole or in part constitutes plagiarism, is illegal and strictly prohibited.



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