Why would anyone ever use a payday loan? People unfamiliar with this lending option often wonder what the use of such a tool could be. For people with bad credit, however, payday loans offer the solution to short term cash flow problems. At times when you need money quickly but aren’t getting paid for another week or so, payday loans can help you fill in those gaps. For members of the military, payday loans provide a quick answer on a fixed budget from anywhere in the world. Fast Money, Serious Considerations
Payday loans are designed to fill in temporary cash flow gaps. Generally, their terms are for 14-30 days, with the notion that you will repay them on your next payday. For that reason, getting a payday loan takes serious considerations of your current income and ability to repay the money that you take. In times of crisis, the money that a payday loan provides can be invaluable, but you do not want the use of a payday loan to throw you into more debt and make your bad credit worse.
Therefore, military members using payday loans should look at their current salaries and calculate the expense of their loan plus its interest along with all other bills that need to be paid each month. If you feel like you will need a longer period to repay your loan, then you can roll over the payments, but that will require that you pay associated fees. Therefore, you need to read all the fine print before taking the loan.
Finding the Best Loan
Since military member serve all over the world, getting a loan in the traditional sense, from a local bank, may be impossible. Payday loans, however, are generally offered online by numerous lenders and require very little paperwork. Generally, you can be guaranteed a loan based on proof of active military service alone. Online forms are short, and easy to fill out whether you are at your home base or overseas.
When dealing with online lenders, it is important to note that not all of them will offer you the same deals. Therefore, you will want to generate a list of four or five different lenders who offer payday loans to military personnel. Research each lender through independent ranking agencies such as the BBB and different financial websites and only go with those whose reputations are solid.
Once you have a list of several lenders, get a quote from
each of them and consider:
– Principle amount – how much money do you need and how much will they give you?
– Interest Rates – remember that payday loans will come with higher interest rates than traditional personal loans due to their short terms.
– Fees – should you have to roll over your payments, make sure that the fees are reasonable and that interest doesn’t skyrocket.
– Repayment Period – some payday loans will come with terms longer than 30 days.
Realize that you will not be able to get every bullet point perfect, so know which are most important and prioritize from there. Only you know what you can and cannot afford.