Payday loans are notorious for coming with very high interest rates that can hurt the borrower, rather than help them get out of debt. Because of this, you should consider other options before you decide to get a payday loan.;
, A legitimate company is one that will not scam you out of your money.


Visit the company’s website and take a look at their policies. Read the fine print and look for any hidden fees that the company may try to charge you.
Take a look at their interest rates. Do they seem reasonable to you?
Find out what sort of fee you will be charged if you do not pay the loan back on time.
Look to see if the application is listed in full on the website. If you can only access part of the application, you may want to consider applying elsewhere, as this means that you have to fill out the visible part of the application to go to the next part. This could lead to covering up hidden fees on the hidden pages of the application.
 If the company does not have reviews anywhere, then go to sources where a review or rating can be obtained. If a service is not on the web or a review cannot be found, either try using a different service, or refer to local agencies like state consumer affairs or other government bodies that have information related to businesses.


Sometimes the BBB (the Better Business Bureau) can be a good source for local reviews or ratings.
 This is important because getting the right loan amount and setting up a plan that is comfortable for paying back the amount is crucial to making sure that the loan will work for you. Most companies will offer loans of up to $1,000 or $1,500, but that does not mean you should take out that much.


Only take out the exact amount that you will need, and immediately draft up a budget that will allow you to pay back that amount, and the fee the company will charge, by the payment date. If you do not, you will most likely be charged incredibly high late fees.
 When you sit down to fill out your application on the computer, it will be helpful to have everything you need right next to you. While some companies may different regarding what information they will ask of you, companies commonly ask for both personal and financial information. This could include:


Your bank account information, including your routing number ( you can find this on a check). You may also need to prove that your bank account has been open for a certain number of days (some companies require a month, while others may ask for 90 days or more).
Your contact information, including your current phone number.
Proof that you are over 18 years of age.
Your social security number.
Proof of your employment, like a pay stub, that can help to verify that you have an income.
Your employer’s contact information.
 Once you have compared several companies to each other, choose the one that you think is most reliable and pull up the application on their website. Make sure to read over the application in full to look for any fine print that could potentially hurt you.


While you might find an application that is spread out over several pages less intimidating than one that is listed all on one page, it is very important that you be able to see all of the application so that you can look for hidden fees.
If you do want to fill out an application that only is partially viewable, make sure that you confirm with the company beforehand that your information will be deleted if you decide not to fill out the entire application.
 Different states have different restrictions on payday loans. Some states put a cap on the amount that can be borrowed, while others do not let you renew payday loans when your payment date comes up.


Double check that you have filled in the correct state that you live in so that the application fits your state’s rules.
 Make sure that the fees remain the same throughout the application. Take a look at the interest rates and decide if you are really willing to pay such a high interest rate. The Truth in Lending Act requires payday loan companies to be completely transparent about their fees and interest rates.


Interest rates can range from 400% APR (annual percentage rate) to 780%. To further explain, companies will commonly charge at least $25 per every $100 borrowed.
 As mentioned above, different companies will require different kinds of information. At the very least, you will most likely be asked to supply your:


Date of birth and name
Contact information
Bank account information
Employment and employer information

, Once you have completed the application, it will have to be approved by the payday loan company. Some companies will process applications faster than others, but it seems that most companies will send out approval emails within three business days.


Most online loan companies will use email to contact you and tell you whether or not you have been approved for a loan.
 Once you have been approved, the company will generally transfer you the money within a business day after you have been approved. Keep in mind that allowing the company access to your bank account means that they will take the money you owe them as soon as the payment day arrives.


You may also be able to get the money placed on a prepaid debit card.
 On the scheduled payment day, the lending office will go into your bank account and withdraw the amount that you owe them. If you have the correct amount of money in your account, then the money will be withdrawn, and your transaction with the lending office will be over.


If you do not have enough money, then the company will charge you a fee for not having the money on time. Some companies will continue to collect interest until you have paid back your debt in full. This is why payday loans are often considered a trap; if you do not have enough money, the loan office can continue to take money from you.
 If you realize that you will not have enough money to pay off your loan, then consider renewing your loan. While the company will still charge you a fee to do this (often $15 or $20) you will not be charged the incredibly high late fees that often come with payday loans that do not get paid off.


Some companies only require that you pay off the interest, rather than the full amount borrowed, on each payday that you renew your loan. However, do not fall into this trap; doing this will cause you to pay the company much more money than you would if you began paying off the loan, interest included, in full.
 Just as you used reviews to help you find your payday loan company, so should you leave a review to help people in the future. If you had a bad experience, make sure to give a warning to others who might fall into a similar trap.


Similarly, if you had a good experience, give details as to why the company is reliable.
Do not take out a payday loan unless it is your last resort.
Find a legitimate online company that offers a short term loan or payday loan.
Use sites that have reviews or ratings of the services offered.
Know your limit.
Gather necessary supplies beforehand.
Go to the company’s website.
Select your state to make sure that you receive the correct rates and policies.
Double check the fees that will apply.
Fill out the application with all of the necessary information.
Wait for your payday loan to be approved and check your email.
Pick your cash up, or have it deposited into your bank account.
Pay your loan back by your following payday.
Consider extending your loan if you do not have enough money on payment day.
Provide feedback.
{"src": "wikihow-all_validation", "title": "How to Get a Payday Loan Online"}