What You Need to Know About a Same Day Payday Loan


The bills are due, but your paycheck isnt. You see signs all over the place and online yelling that you can get a same day payday loan right now. A handful of cash might solve your problem. So what should you know about a same day payday loan lender before you sign up? Follow this guide.

Cost

The loan agreement should spell out how much youll end up paying in interest. That can run from 10% all the way up to 40% based on the amount borrowed and the length of time. That can rack up an annual interest rate of 300% to more than 900% total. The lender might not tell you that upfront. So ask, and make sure you read every line of the contract even the small print.

Some lenders also tack on fees for finance charges, extending the contract, and other miscellaneous items. Before you sign the contract add up every item to be clear about how much youll pay for the same day payday loan.

Length

You can usually get the loan to cover different amounts of time, from two weeks to a month. Be realistic about the odds of paying back the loan, plus the fees, in two weeks. If youre already in a cash crunch, will you be able to afford taking that money out of your next pay check?

If not, negotiate a longer-term same day payday loan. Its cheaper than having to extend a two-week loan over and over, for which youll be charged a fee. A 14-day 0 loan that initially cost you can turn into a ,000 monster if those two weeks stretches out into a couple months.

Limit

After you decided on the fees and how long youll need the loan, the last item to figure out is how much you actually need. Borrowing more than necessary will end up costing you in the long run, no matter how tempting.

When you go the lender, bring a written statement of how much you need to borrow and what youre going to use it for. Like a grocery shopping list, this should help you resist splurging.

This also depends on how much the same day payday loan lender will allow you to borrow. Avoid lenders that will let you borrow the entire amount of your next pay check. Theyre hoping you wont be able to pay off the loan, letting them collect massive amounts of interest.