When Should I Apply for a Quick Payday Loan Online? Helpful Dos & Don’ts

Applying for a quick payday loan online or cash advance can be confusing, especially if you’ve never had to get a short term loan before. But if you’ve run into an emergency situation and you need fast cash, payday loans online could be the best option for you.

But before you apply for a cash loan, here are a few helpful dos and don’ts that you should follow. Learn more now, and make sure you’re making the right financial decision.

✅  Do: Shop for Loans from Multiple Online Payday Lenders

One of the nice things about shopping for payday loans online is that you can explore different providers and find a lender who is offering a competitive rate for your cash loan. You should take advantage of this, and inquire about multiple loans, to see who will give you the best deal.

✅  Don’t: Take out Multiple Loans, or More Than You Can Afford

Following the above point, it’s important that you don’t take out multiple payday loans, or a larger loan than you can afford. Payday loans online are convenient, but they are very expensive in the long run, with a higher APR than just about any other type of loan. Never take out a bigger loan than you can afford to repay. 

✅  Do: Take out a Payday Loan Online for an Emergency

Your car has broken down and you need to get to work. You need to pay the gas or power bill so that your furnace isn’t shut off. You’ve got an unexpected medical expense – these are all emergencies where it makes sense to take out a payday loan.

When there is a bill that you can’t afford to ignore or an expense that must be paid for you to keep your job, and you don’t have the cash, a quick payday loan is a great choice.

✅  Don’t: Take out a Quick Payday Loan Online for Everyday Expenses

You want to get the latest iPhone. You’re planning a vacation, but a little short on your budget. The kids want more Christmas presents – these are all situations where you should never take out an online loan.

We’ve said it already, but we’ll say it again. Same day payday loans online can be very expensive. Because of this, they should be reserved for emergencies – things that cannot possibly wait. If you take out a payday loan for everyday expenses, you’ll find yourself in financial trouble quickly. 

✅  Do: Understand Your Repayment Schedule and Budget Accordingly

Before you sign up for a payday loan, make sure that you know exactly when you’re expected to repay, and how much you owe, and budget accordingly, to make sure you’ll have cash on-hand and in your bank account. Most online payday lenders will automatically draw your payment on its due date.

✅  Don’t: Risk Paying Late Fees and Overdrafts by Failing to Pay

If you don’t have the cash to repay your loan on time, you may face seriously high late fees from your lender. Or, they may withdraw the money anyway – causing your bank account to overdraft and accrue fees that are as high as $25-$30 per day. Because of this, you should always make sure you can repay a loan – before you take it out!

Follow These Tips – and Shop for Fast Payday Loans Online Wisely

These dos and don’ts should help you when you’re picking out a loan. Just remember – get a loan for emergencies, know what you owe, and have a repayment plan. If you follow these tips and avoid the “don’ts,” you’ll be in good shape when it’s time to repay your emergency cash loan.