Unless you pay your payday loan on the due date finance charges and extension fees start to increase, and the amount you need to repay is a huge amount besides the payday loan amount. This could put you in a vicious cycle of debt.
This could be enough to get a bad credit score on your credit history. Some faxless payday loans services impose prepayment penalties for payday loans. If you are also going to repay the loan before the repayment date make sure there are no prepayment fees in the agreement. Or you could take some loses doing it. Be sure to read all the lenders instructions so you can repay your payday loan in time and on schedule. This helps you save penalty fees on late payments.
Precious few payday loan lenders offer short term payday loans free of cost for the new customers! If you can repay the loan on the due date itself you can save the interest rate and other extra charges of the payday loan. When the payday loan companies withdraw the payday loan amount and finance charges you will be considered as having paid in full.
Different repayment options help you to repay the payday loan amount when you have the bucks. Most of the Payday loan lenders offer repayment options, by which you can pay part of the loan amount along with the finance charge, or the finance charge alone on the earlier decided repayment date. You can extend the rest of the amount till another date.
If you've paid part of the loan amount along with the finance charge at the original date, you'll have to pay back the remaining loan amount along with its finance charge plus an extension fee at the extended date. You can also extend the loan amount in whole. It's clear to see that it's always better to pay back on time.
Rates are what any loan is all about, and they could discourage many individuals suffering from bad credit from approaching lenders. What sets short term payday loans apart is the fact that that many payday loan lenders offer their cash services even for individuals with bad credit.
If you're in a really bad credit situation and you have mounting cash needs between your paydays, the payday loan is just about the only option you have of setting your finances in order and rebuilding your credit.
But before you select a payday loan lender, make sure you get the Payday loan rates right. Payday loan rates include the finance charge or interest rate for the loan amount you borrow, and other charges for the application, extension, and flexible repayment options.
Generally finance charges for payday loans range from $15 to $30 per $100 borrowed, which would translate to 390% to 780% in APR rates. Payday lenders are required by law to publish their APR rates and give you any information you demand about the rates and the terms and conditions of the no teletrack payday loans. The APR is the Annual Percentage of Rate of Interest.
Before you apply or agree to the terms and conditions ensure that you check out the APR comparison chart. Some states such as New Mexico have passed laws regulating the rate of interest charged. Payday loan rates also depend on your credit score. Your credit score may not discourage you from a payday lender, but the better your credit rating the more competitive the rates you're charged.