Friday, October 12, 2018

Little-loans.com


Millions of people use Payday loans to help them get through financial emergencies. And there are many companies offering short term loans. However, for some borrowers, the experience has not been a positive one. This can be because they have not taken the time to research and find a reputable lender, or more often, it is because the borrower is not aware of their rights and responsibilities.
If you are considering a Payday loan, before you submit your application, take some time to make sure you understand how the loan works and what your rights are. You should also fully understand how much the loan will cost you and when it should be repaid.
A Payday loan is a formal credit agreement between you and your lender. It is just as formal and binding as any other form of credit, like a bank loan, or credit card. As such, it should be taken just as seriously.
Often, because it is a much easier and quicker process, borrowers do not fully appreciate that they are entering into an official credit agreement when taking out a Payday loan. Agreeing to a loan, or any form of credit, without being fully aware of the implications to your own finances is a mistake. You should be aware of the costs involved, and know your rights as the consumer.
By taking the time to educate yourself and ask the right questions, you will have all the information you need, and then be able to make an informed decision about how much to borrow and who from.
Questions you should ask:
What are the interest rates of the loan and what is the Total Cost of Credit? The TCOC is a crucial figure because it is the total amount you will have to pay back. Some lenders may appear to be offering a cheaper loan, where in fact, they also add a fee which makes the loan much more expensive.
What are my rights as the consumer? The answer to this question can vary, but the best lenders will provide this information on their website, or they will provide links where you can read further information.
Is this a reputable lender? Identifying a good lender takes time and research. Look for reviews, feedback from real customers, and speak directly to the lender. If they give you information which is clear, and they do not try to sell you a loan, then it is likely they are a good lender, operating fair lending practices. The best lenders will answer your questions and help you without any obligation to borrow. You can also check that they are properly licensed and authorised to operate as a private lender. Do not deal with any company that is not fully licensed and authorised to offer credit facilities.
Can I afford the loan? As a borrower, you are promising the lender that you will repay the loan by the specified date. Before you agree to a loan, make sure you can afford it and that you will be able to repay the full amount when agreed. Failure to repay a loan can result in a mark against you on your credit record, and you could incur further interest charges.

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