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5 Common Mistakes to Avoid When Applying for a Payday Loan

Written By emilie dane on Monday, April 15, 2013 | 9:01 PM


In most cases, people that are looking for payday loans are in a hurry. Whatever the reasons are, these types of loans are normally applied for under pressure, making it more prone to mistakes with less carefully made decisions with regards to the applications.

If you on your way to get these types of quick cash solutions then you should make sure to be careful with your application as you would do with other legal documents - in particular, it is best to avoid these 5 mistakes when applying for a payday loan:

- Never Lie

This fairly applies to any kind of serious documentation, whether for quick loans or traditional loans. Lying to make sure you get your applications approved - because you might fear that some details might prevent you from getting one - won't help your situation much. Doing such will only delay the process and might decrease your chances of getting the loan approved. Keep in mind, the questions given are ones that can be confirmed. The chances of your lies being discovered is very high.

- Don't forget to review your application for mistakes

Needing quick cash means time is of the essence. An application full of errors, or errors in spelling, will cause delays. It might require supporting documents and clarifications, and might need you to file another application. To avoid this hassle, make sure to check your application before submitting it.

- Read the APR and know what you are getting yourself into

Payday loans (and other quick cash loans) are usually short-term loans - which means they carry high Interests. Be sure to know and understand every detail regarding how much the interest will be on the amount you plan to borrow and when it's payable. Interest differs per lender and per state so make sure to know these info's.

- Pay back on time

Never apply for quick payday loans thinking that repaying on time is not that important. Payday loans are meant to be borrowed and paid on the next payday - so if you end up borrowing and paying late, you should expect to be charged and paid more than the initial interest given. Penalties may even be given for late payments.

- Never Borrow what you can't afford

Quick loans are there to provide you with an option until your next payday - and not for long-terms - so they should be based on what you can afford to pay in a shorter term (i.e. on the next payday). Borrowing more than you can afford will only result a more expensive loan in the long run.

Payday loans are very effective in providing you that much needed cash up until your next payday cheque comes in a very fast process to handle time essential situations. However, like any finance matter, they need to be carefully used properly - if you will be able to avoid doing the most common mistakes mentioned above, you will be able to use these loans to your advantage and not have to worry about fallouts from taking a loan.

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