It's not hard to understand why quick payday loans are so popular.
After all, who wouldn't love to be able to get their hands on a few hundred dollars (or even a few thousand dollars) in an emergency without any real delay whatsoever – even if payday is days away?
Quick payday loans make that possible!
At the same time, like all other nontraditional lending solutions you need to know what you are getting into. Payday loans – especially quick payday loans – are not created equally across the industry.
Different services have different reputations, different ideas of what “quick means”, and some are a lot more financially friendly than others when it comes to fees, interest rates, and repayment terms.
Credit score makes almost no difference whatsoever when it comes to accessing quick payday loans.
Like we mentioned a moment ago, payday loan services (usually) only need to see that you are gainfully employed and have been for at least a few months. They'd like to see your last few check stubs just to get a feel for what your take-home pay is like, and that's what they are going to base your credit line off of.
Your credit score (and your credit history) almost never come into play.
The real trick with taking advantage of quick payday loan services, though, is evaluating your options effectively.
Here are some of the more important things to consider before signing on the dotted line and accepting any money through these kinds of services.
For starters, you'll want to calculate what your overall cost for this kind of loan actually is.
A lot of people look at these kinds of loans as low dollar value, short-term loans and assume that they are very affordable.
Sometimes that's the case. Especially when you connect with legitimate businesses that aren't looking to squeeze customers already dealing with a cash emergency.
Sometimes, though, the APR on a two week quick payday loan can reach $400 or more. Combine that with hidden fees, surprise charges, and other unexpected expenses and you might be surprised at how much a loan of this type can cost.
Calculate that out ahead of time for sure.
It's not a bad idea to look into the credit building potential of quick payday loan services, either.
No, you usually won't see much of a bump with your credit score if you take out a two week loan. But if you take out a couple of these loans over say a six month span of time (or maybe over a year) it's not unreasonable to imagine your score will go up.
Obviously you have to be getting quick payday loans from a service that reports to all of the major credit bureaus for this to have an impact, though. Make sure to double check that as well.
Your repayment timeline should be written very clearly in the terms of your quick payday loan agreement.
It's important to know when your loan officially starts collecting interest, how that interest is going to be calculated, and when your loan repayment window closes.
You'll want to know how your payments are scheduled (interval or lump sum) and other details having to do with a repayment timeline, too.
The customer service and support offered by quick payday loan services is hugely important.
You may never have to contact these professionals (most of these loans are almost 100% automated) but it's nice to know that real, personal help is available in a pinch. Definitely confirm that there's a dedicated, 24/7 customer service team available.
Finally, you want to be sure that the quick payday loans services you're connecting with has a sterling silver reputation.
And we don't just mean with their customers, either!
Sure, it's a good idea to look at Google reviews and testimonials from previous customers. You want to know that the payday loan services you're using treats their customers right.
But you also want to know that they have a solid reputation in the industry as well.
Look for industry certifications, look for licenses, and make sure that they are legitimate operations 100% on the up and up.
Check off all of those boxes and you'll have nothing to worry about moving forward with this great, nontraditional, lightning fast payday loan service.