What has a payday loan got to do with your rights? A lot. When you have promised to pay your debt, you have to fulfill it as this is a chance to mend your credit score. But are you aware of your rights as a paycheck loan borrower?
Do You Know Your Rights as a Borrower?
A bill that couldn't wait depleted your budget a week before the next payday. You're facing shortage of food and money for commuting to work until the next paycheck. The verdict: you need a fast payday loan to save your sanity.
A payday loan can make you richer by $100 to $1,500 within a few hours. You can stock up on a week's supply of food and have enough for other daily expenses until you get your next paycheck. With access to express loans like this, you have to know what is in it for you.
As a borrower, you need to know what you are going to put up as security, the interest rates, additional charges, penalties and prepayment arrangements. You have to find out if the company is covered by the Consumer Credit Code. Knowing all these, you'll know the right questions to ask before you take out a short-term loan.
Which Lender Is To Be It?
Getting a short-term loan is easy. Lenders have made it easy it easy to qualify for a payday loan, and the borrowers can apply for a loan online and at the lending offices. The money is immediately deposited in the borrower's account through a secure online banking system.
Smart lenders look up the lending company carefully and check out the following:
* Is the company licensed?
* Does the lender assure security of information?
* Does the lender have secure Internet connections?
* Is there a penalty for pre-payment?
Most often, you will end up with a lender patronized by colleagues, but this should not prevent you from trying other lending companies that can offer the same convenience. Ask lower interest rates for short term loans.
Are interest rates for short-term loans steep? Lenders justify their rates as worth the risk since there are no tough credit checks done. An employment certificate and the latest pay stub will do. But instead of borrowing from the mom and pop grocery that doubles as a cash advance lending machine, check out the legitimate lending companies in the area.
Other than lower rates, you should also choose a lender that takes time to explain everything to you, as it is your right to know how these loans work and the options available to you as a borrower. You can choose not go for a payday loan if you think you cannot afford to pay the full amount plus interests.
Responsible Borrowing
No matter the hype, the criticisms or the platitudes for easy salary loans, the burden of payment falls on the borrower. Hence, it is important that you should assert your rights:
* to know what's the deal.
* find lending alternatives.
* be educated on the aspects of borrowing in the locality.
Knowing the details of the payday loan will make you aware of your responsibility as a borrower, managing your money, and paying your loan on time no matter the repercussions. A loan paid on time makes it easy for you to manage your future finances.
