If you are considering taking out a quick cash advance payday loan, which is possible for most people regularly employed, even with bad credit, there are some things you should know first, to help you not find yourself in a situation much worse than you had originally intended. Most of us have had a bad credit rating at least at some point in our lives. And most of us have had times when we just couldnt make ends meet until the next payday check (or direct deposit) arrives. If you need a fast cash advance payday loan, because of an emergency, unexpected expenses, or just bills piling up, here are some important tips to help you make the smartest decision possible.

1) Dont use a payday loan unless you have a realistic plan to pay it back on time. This may seem obvious, but more than half of all payday loan borrowers do not pay back the pay day loan by the due date. This results in hefty late fees and/or higher interest, and can very quickly result in a spiral of debt much worse than before the loan. There are many cases in which payday loans have built up to where more than half of a borrowers paychecks goes to pay back previous payday loans, making it nearly impossible to ever dig out of debt. While several states have recently passed payday loan consumer protection laws, they cant eliminate the late fees or interest charges. If you dont think you can pay back your loan, look for any other alternatives, such as borrowing from friends or relatives, or calling creditors to ask if you can reduce your payments for a few months, or pay late. Easy and fast cash now can often be very expensive later.

2) When you are looking for an online payday loan cash advance lender, make sure you are dealing with a legitimate, established and trustworthy company- and not scammers. This also may seem obvious, but the difficulty is that there are hundreds of payday loan online lenders popping up every month. Some of them are actually scams with impressive looking websites that are actually intended to get all the personal financial information from you they can. So look for memberships they may belong to, such as the BBB, and go to that site to verify membership (any scammer can put an image of the BBB on their website). Most cash advance payday lenders are trustworthy, just be cautiously skeptical to make certain the company you are dealing with is. This brings us to #3.

3) When filling out an online fast cash advance payday loan application, never give more information than is necessary for the loan to be approved. Information such as pin number, mothers maiden name, and other private personal information are not necessary to get a payday loan, and may indicate the site is a fraud.

4) Take the time to shop around for the best deal for you and for your situation. Some payday loan companies have no faxing required. Others have no fax, no teletrack and no credit check. Some require no NSF (Insufficient funds) in your bank account recently, and others allow a limited number. Some require payment in full in one or two weeks, others allow a month. Some allow gradual pay off, and others require that you make no payments until you can pay off the loan in full (increasing the chances you will not repay it on time, which increases the fees they charge you.) Some payday advance loan companies have introductory rates for new customers. They may offer $10 per $100 dollars borrowed, for example, when their normal rate may be closer to $15. Some companies may have special payday loan sales at certain times. Others may just be cheaper year round. Some have near instant deposit into your checking account (sometimes for an extra charge). Others take a day or two. With over a thousand online payday loan companies in the U.S. alone, at least look at a few to find the one that seems best to you.

5) (And this may be the most important) Be sure to read all the fine print, and understand all interest, charges, fees, possible late fees, etc. Some companies may seem to have a great interest rate, yet charge a separate processing fee or other additional fee. Other companies may have a cheap payday loan cash advance upfront, but if you fail to pay it back on time they may charge much more than other payday loan lenders. So be sure you understand exactly what you are being charged, and what you are agreeing to.

If you follow these tips, and spend some time finding a company you trust that meets your needs, your payday loan will likely be a smart decision to help you handle a difficult financial situation. And one you wont regret.

2006 LearningCredit.com