Payday loan lenders are a dime a dozen, but there are some things you need to know before applying for your next loan. I'm not going to preach to you about how expensive payday loans are, or how risky it is if you don't pay it back. You probably know that already, and if you don't spend a few minutes browsing around the web to learn what you need. You're here because you want to learn how not to get ripped off by a payday loan lender and get yourself the best rate.

A quick rundown of what payday loan lenders do is in order though. A payday cash advance is a short-term loan that if available in most states for people who have a job and bank account, and can prove their income and identification. The loan is to be repaid after you receive your next paycheck, usually a two-week term but each lender has their own policies. If you don't repay the loan, you're going to deal with incredibly high fees and fines. So pay it back!

Direct Payday Loan Lenders

The cash advance industry is very loosely regulated, so each payday loan lender will have very different terms from its neighbor. The average rate in the U.S. is $25 per $100 borrowed, but can vary from as low as $5 all the way up $35 per $100 borrowed. What this means for you is that you have to do some research to get the best rate. Sometimes the only way you're going to figure out what a lender's rates are is by getting a loan, but some of them do have their rates and terms posted on their website. If you know other people who have used a particular payday lender, ask them what they paid.

Some lenders will also be more lenient in the amount that they will lend. Most payday lenders will have you fill out a form that asks you about your monthly expenses like rent, utilities, phone, etc. to determine how much they can lend you. Other companies don't do this. This means two things for you; 1. You can get more money, and 2. You run the risk of getting more money than you can afford to pay back. Be very careful when you get an offer like this, and don't be afraid to ask for less.

Online Payday Loan Lenders

Above we talked about how loosely regulated the cash advance industry is, the online side of this industry is a lot like the wild-west and lenders are making up the rules as they go along. Some of the lenders operate in areas that border being illegal. This doesn't mean that you shouldn't consider online payday loan lenders, just be very careful who you do your business with. The most important thing to consider is the fact that you're going to give the lender your bank account information, and they'll be able to withdraw funds from your bank account until they get paid back. This is extremely risky if you don't have the money to cover the funds!

Faxless payday loan lenders are also available. These companies operate solely online and charge much higher rates than the other ones do. The reason for this is that they are going on blind faith that you have the income that you say you do and you are who you are. They do some checking, but not enough to make the loan very safe for them. To cover this increased risk, they charge a lot more money.

These are your options for bad credit payday loan lenders. I hope you know more now than you did before you clicked onto this page and can make a better decision about which type of payday loan you need.

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