Crucial Things To Consider Before Signing Up With A No-Doc Payday Loan Company

AdminBy AdminOct 28, 20170

Are you thinking about borrowing short-term cash from a no-doc payday loan company? Think before you take a step! There are many things that you need to know before signing up. You will find lots of no-doc payday loan companies out there; all you need to do is just type the words in Google. Thousands of results will abruptly appear before you on your computer screen.

These companies are always on the lookout to lure customers by offering short-term loans with no paperwork. Even though the deal might sound totally wonderful, getting immediate loans with no hassle at all, you need to be cautious as most of such companies are fraud or charge high rates of interest.

Here are some of the important factors that you should keep in mind before you consider any payday loan company.

Interest Rate

Interest Rate

The first and foremost thing that you need to look for in a pay-day loan company is the interest rate they charge on the loan. Some companies charge over $60 for every $100 of loan even if the repayment period of the issued loan is as short as fourteen days. Unluckily, there are many consumers who in pursuit of acquiring the money anyhow are ready to pay such high rates of interest.

Later, these are the ones who fail to repay the loan and are forced to take another payday loan. The cycle of taking more and more loan continues until all their money consumed. Therefore, if you find a company that charges a high interest rate, try some other option, such as borrowing money from a credit union or a traditional bank. Even though you might have to wait a little while, it would prove to be much more affordable in the long run.

Terms And Conditions Of Loan (Repayment, Penalty, Rollovers)

Terms And Conditions Of Loan (Repayment, Penalty, Rollovers)

The next crucial thing to consider is the terms and conditions under which the loan is being offered. Your focus should primarily be on the provisions about repayment, such as penalty charges, late fee, rollovers, NSF fee and others.

DO NOT sign a contract saying that your loan will be renewed if the amount is not repaid on the assigned due date. Loan renewal means that you will have to pay the interest for another month, which can add up to be a huge amount because of high APR. Also, check if there are any hidden penalties or charges.

Rules And Regulations

Rules And Regulations

Make sure you go through the rules and regulations part very keenly to ensure that the no-doc payday loan company that you are signing with is not violating any state laws. If you see any violation, you must register a complaint against them instantly with the state authorities. You may be taken aback to know that there are many companies that are not even licensed to issue any loan.

Reputation And Trustworthiness

Reputation And Trustworthiness

If your no-doc payday loan company passes the other test criterions, you must ensure that it is reputable and trustworthy. Check their record with earlier clients. If you come across lots of consumer complaints against a particular company, you should take it as a big warning sign.

Conclusion

In short, though it is simply not recommended to opt for payday loans, you may still want to give it a try if you are lucky enough to find a real no-doc payday loan company. Make certain that you research thoroughly before signing up with any.

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