5 Questions to Ask Yourself Before Deciding to Secure a Payday Loan

Deciding to secure a payday loan requires a methodical approach by the borrower to determine whether or not it truly is the solution to your financial problem. Remember - a payday loan is a short-term, not long-term, solution to a financial emergency.

Here are 5 questions to ask yourself before completing a payday loan application:

1. Will I be able to pay off the loan in the given timeframe? Usually, lenders require borrowers to repay their loan when they receive their next paycheck, which is typically a two-week timeframe. Sometimes, lenders will require that you hand them a blank check for them to hold and they will deposit that check for the amount that you borrowed when the time comes. It is imperative that you not only have the funds available to repay your loan, but make sure you intend on actually repaying the loan, as not doing so will seriously hurt your ability to borrow again, not to mention drown you in further debt.

2. Do I really need this money fast, or can it wait? This is a pivotal question to ask yourself, as there is an enormous difference between a payday loan and a conventional bank loan. First, if the money can wait, by all means, take out a conventional loan. For instance, if you are moving into a new place in a month or two and do not think you will have the money to put down your first month's rent or deposit, either save up for it or take out a conventional bank loan. Conventional loans require a longer approval process, but their interest rates are lower, and you will have longer to repay the loan. Of course if you truly do need money fast, payday loans are the best option, as they offer fast approval and almost instant cash.

3. Is my credit poor? This is a question that ties-in with the previous one. Bad credit hurts your ability to secure conventional loans, as banks are usually very strict when it comes to lending money to customers with bad credit; they either saddle them with high interest rates or do not approve them, period. This is important to keep in mind, because if your credit is very poor, securing a payday loan may be your only option. Payday lenders rarely check your credit history, and even if they do and find out that you have a poor credit score, they will approve you anyway.

4. Am I looking for as simple a solution as possible to my financial situation? If the answer to this is "yes," then look no further than a no-fax, online payday loan. The reason this is an important question is because not everybody has the time to worry about gathering all documents necessary to complete a loan application at a payday loan store, let alone a bank. There is no need to worry about meeting stringent requirements in order to obtain a loan, as payday lenders simply only require that you have a job or a steady income source, be at least 18 years of age, and have a checking account.

5. Am I dealing with a trustworthy and responsible lender? This is something to ask yourself before filling out an application, either at a store or online - mostly online, however. There are a lot of scams out there on the Internet, and you have to be very careful in whom you give your information to. Companies that require an upfront fee to process your loan are ones to AVOID, as these are known scams that have unfortunately conned many people. Always remember to research companies thoroughly. A suggestion would be, if you choose to secure a payday loan through the Internet, to deal with a site that has processed thousands of applications and is well-known in the industry.

It cannot be stressed enough how important it is to do your homework and be methodical when thinking about securing a payday loan. Remember to ONLY deal with reputable, well-known payday loan sites such as OneHourCash that match borrowers with lenders and offer a safe, simple process to secure a payday loan. Deciding to go with a payday loan is a big decision - it is not a choice to make on a whim. If you do your research, act responsibly, and deal with reputable companies, taking out a payday loan may be a worthwhile means to rectifying your financial situation.