Credit history, APR and Fees

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Emergencies can cause financial stress and many turn to payday loans to help. If you don´t treat these short-term loans properly, you may find that they hurt you more than they help. With these five rules however, you can use a payday loan to help you with your current emergency

Let’s face it, nobody wants to use an online loan, but if you need money fast, it’s a great way to get it. Sometimes life comes at us like a tornado leaving our finances in disarray. When this happens, a short-term loan might help get you out of that funk and back to the financial position you desire. If you want to check your credit prior to applying for an online loan we’d recommend

If you’ve never taken out a payday loan or cash advance, you need to know what to expect. These loans cannot be treated the same as many other loans. These five quick rules to follow will help you whenever you need a payday loan.

Treat it Like a Band-Aid
When you cut yourself, you use a Band-Aid to help stop the bleeding. You don’t wear this Band-Aid forever and once the cut forms a scab, most people remove the Band-Aid. The same does with a payday loan. If you treat it like a long-term loan, you will end up with a bad mark on your credit report and the debt will grow.

Payday loans exist for short-term emergencies requiring cash right now. They don’t exist for those looking for a loan of more than 30 days. If you need cash fast, a payday loan will help, but if you need more than a couple paychecks to pay it back, you need to look into other options.

Only One at a Time
The temptation of taking out more than one payday loan at a time may seem like a good idea, but it’s not. Even if you can get away with this, you will find it just destroys your credit and makes a difficult situation nearly impossible. Lenders only approve you for a certain amount because they don’t want to cause more financial stress than you already feel.

Emergencies Only
If you want a little extra money for your vacation or for a night out on the town, a payday loan is not the way to go. You only want to take out this type of short-term loan if you need cash and not just want cash. Reserve this type of financing for emergency medical bills, car repairs, and other emergencies you must deal with immediately.


Payday Loans: Interest Rates, APRs, and Finance Fees:

Interest rates
For every loan amount you acquire, there will be an interest rate attached to it. For many loans, this can result in an additional $15 to $30 for every borrowed amount of $100. The interest rate will vary in accordance to the laws governing the payday loan industry, as well as between individual companies. It is certainly in your best interest to shop around for the lowest interest rates possible.

Annual percentage rates
The annual percentage rate (APR) is the annual interest rate. It is important not to get this rate confused with the general interest rate, which is effective per month. Similar to the interest rate, the annual percentage rate will be high, so it is ideal to shop around. Also, like with the interest rate, payday loan companies must disclose the annual percentage rate to its costumers to enable fair comparisons.

Finance fees
The finance fees you encounter will vary between payday loan companies depending on the services offered. One fee that you should be aware of is the penalty fee for if you should miss your deadline for repaying your debt. Because it will only increase the total amount owing, it is very important to never miss the appointed deadline. You can choose to endure a rollover fee to extend the loan, although you will still accumulate interest fees on the total amount.


Warning: Late repayment can cause you serious money problems. For help, go to