Cash Advance Tips

Payday Loan Privacy

Be sure you are working with a lender that guarantees your privacy when you applying for a payday loan.

Tip 1. Work with online payday loan providers that have the technology to protect your information.

• Ideally, you want to work with a lender that has a secure encryption system so that your personal information, transmitted via the Internet, is not vulnerable to inappropriate eyes.

• Be mindful that information regarding your IP address, web browser, etc. is collected to enhance your online application experience. You should also be aware that, like any other business service, payday loan providers must comply with law enforcement when requests for information are appropriately submitted.

Tip 2. Read loan maker privacy policies.

• When you apply for payday loans online, privacy concerns extend beyond technology. For example, what is the lender's policy on sharing your personal information with third parties? Under what conditions is your information shared? Does the loan provider offer you the opportunity to opt out if you don't want your information shared? Is access to your application file limited only to those involved with processing payday loans?

• You should maintain copies of your loan providers' privacy policies along with your other financial documents. Payday loan providers may occasionally send you updates or amendments to these policies; these should be added to your files.

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Don't Be a Victim

Cash loans have become increasingly popular because they can help people, but it also gives scammers a way to take advantage of others. Here are a few ways to avoid falling victim to a scam.

1. Throw out spam emails. Legitimate companies do not need to send you bulk emails soliciting you to take loans. Use that spam filter and ignore them.

2. Avoid Up-front fees. If someone wants money from you up front in the hope of receiving a loan, don't do it. You may as well kiss that money goodbye.

3. Avoid disclosure. Don't tell a cash advance company why you need the loan. You'll be more vulnerable!

With all of these methods to defraud people, CashLoanSource.com is an oasis. We deal only with bona fide businesses in the marketplace. We don't solicit on their behalf and they don't solicit to you. There are no up-front fees to use our services to bring lenders to you. Also, we verify these companies before they have access to your information.

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When Collectors Come to Call

The last thing you want to do is be irresponsible with payday loans. Even in times of need for emergency funds, make sure you repay the loan quickly to avoid problems. However, if you do delay, or potentially default on repayment, you could face serious issues.

By law lenders can only file a collection against your unpaid amounts. Since a cash advance usually comes as a signature loan with no collateral involved, you don't have to worry about a lender seizing any of your assets against the loan. However, ending up in the collection cycle can hurt you in the long-term. You'll end up having negative notations added to your credit report that will dramatically lower your credit score. Even if you pay off the collection, that information remains for years.

This can do damage well after you are beyond the repayment, including causing difficulties with acquiring credit, personal loans, business loans, car loans, home mortgages and other types of financing. You could even be entered into the ChexSystem database. If you end up in ChexSystem, you could be denied opening a bank account for several years. That's why it's best to use cash loans sparingly and pay them promptly.

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3 Ways to Pay

Unlike most lenders, CashLoanSource.com can help protect you from falling into a debt trap when you simply need money for emergencies or a fast payday loan. Some lenders will not tell you that you have three options to pay for your cash loans. Most will only tell you of the first two.

Here are our three ways to repay!

Pay in full. One of the best ways to use a cash loan is to pay it in full by the date of maturity. This avoids extra fees from rolling it over to the next term and gets you free and clear to move forward. Plus, you'll build a good reputation with our lenders and be more likely to qualify for varying amounts in the future.

Pay finance fee only. This option is available for those who just can't pay the principal off by the maturity date. Perhaps you experienced an unexpected loss. You just need another week. Paying the fee only extends your time, but you still owe the principal.

*Pay finance fee and portion of principal. This payment method is not readily shared by some lenders out there. They want you to just pay the fee when the money comes due. Fees are free money to the lenders. All they're risking is your initial loan amount. Even if you have to roll your personal cash loan over to another term, you should try to pay a good portion of the principal back. This makes it easier for you to pay it off by the end of the next term to avoid paying more fees.

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Understanding Loan Interest

One of the mysteries about payday loans is their interest. Because interest is not stated specifically, the ordinary consumer doesn't know just how much interest they are paying. If they did, they might think twice about using payday loans. Interest is veiled in set fees per $100.

Payday loans can be advantageous if you pay them off during their initial term. They can help you cover an unexpected loss, pay off bills or provide money for emergency. On the flip side, rolling over the term by paying fee after fee for extensions means that you're really just paying more interest on the same amount. Here's an example.

Let's say you borrow $100 and the fee is $15. If you're not the most responsible person and decide that you need to roll over that loan payment five more times before you can pay it off, you'll end up paying $75 in fees to borrow $100. That equates to an effective APR of 780 percent! But if you repay the $100 within a week, you won't pay additional fees and you certainly won't face so much interest. It's important to weigh the potentially high interest rates against your reasons for wanting/needing a payday loan.

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