Getting that money that you need when you have an emergency may mean that you take out a payday loan. These quick and easy loans can be obtained in most places, making it the loan of choice as far as easiness and convenience is concerned. In fact, filling out an application only takes about 10 minutes or less. They can, however, also be very costly. Here are some tips to help you get a better deal when you take out a payday loan.



First One Can Be Free

Payday loan lenders like people to know that they are there to help out in times of emergency - when you need cash in a hurry. They also believe that once you take out a payday loan that you will more readily take out another one before long. So, to encourage you, many lenders will actually let you have the first loan - free of any interest. This could be a great way to meet your emergency - interest free. Not all lenders will do this, however, so you want to read the advertisement carefully or ask them in person.

The amount of money that you can borrow on your first loan will probably be small, though, possibly as much as $400. By paying it off when it is due, this will enable you to get a little larger loan the next time you apply. It is possible with some payday loan lenders to get up to $1,500 in some states; whereas, a few states limit the amount to $500.

Shop Around

This advice always applies whenever you are going to spend some money. It applies to your payday loan, too, and it will cost you more money if you don't look around at the various deals. The interest rates (if this is not your first loan) can vary quite a bit between lenders, so you will want to shop around a little first. Interest can be as much as 30%, or down as low as 15% - at the present time. It is possible that the present competition may drive these interest rates down even more. By looking around, though, you can certainly pay a lot less than you could with another lender.

Pay Early

Only some payday loan lenders will do this. Some of them may reduce the amount of your interest if you pay off the loan before it is due. This can result in some savings. It is possible that local laws also may affect this.

If you have never had a payday loan before, also called cash advance (and other similar names), then you should know that just about anyone can get one. It does not matter what your credit score is either - because it will not even be checked.

What you will need, though, is a job that you have worked at for at least two months, where you bring home more than $1,000 each month. In order to verify this, you may be asked to send fax copies of recent pay stubs and bank account statements. A no fax payday loan means that you do not send this information - but they will still need to verify it. A fax loan can get you the money you need (or want) within an hour.

Either way, you will also need a checking account that has been active for more than two months. This is where you will get your money - and how you will pay it when it becomes due. It will be taken out electronically, or, they could simply put your check through if you gave them one.