If you have ever gone to get a payday loan or a cash advance, then you already know the interest rate is very high. We expect this and it is very hard to find the cheapest payday loans because most of the time we don’t have time to be shopping around. If you choose to search online you can find lenders with lower rates because their overhead is lower.
You should start by thinking about where you are going to find this type of loan. These are short term loans or band aid loans. You want to use these types of loans for the emergency at hand, pay them off, and move on. This is how you avoid paying too much interest and any extra fees.
If you are to borrow $500 you will be paying back around $550 in 30 days so that APR is very high and it does depend on the lender, but you can find a less expensive loan. Once you know how to find the cheaper loan it will not bother you as much if you need to use this type of loan for an emergency.
First, make sure the reason you are borrowing the money is an emergency. You should never borrow on a short term basis for anything that is not a complete emergency. When you are in an emergency situation that requires money, then the payday loan is fine, but make sure you are in need and not just wanting the money.
Next, you want to make sure you pay the loan off as quickly as you can without putting yourself in a bad situation. This will save you compared to what most do with cash advances because most people pay the fee to extend the terms. You can save a good percentage of cash if you pay the loan off on time or early.
Finally, if you can avoid it you should not take out a 30 day loan, but instead a 14 day loan. The 4 week and one month loans are a sneaky way for cash advance companies to make twice as much interest off of you. Make sure you are only taking out a loan until you get paid. Now you know how to get the cheapest payday loans and avoid the interest and fees that most pay when they get a cash advance. Make sure you are in a complete emergency situation before accepting a loan and make sure you only borrow what you need.