Saturday, March 27, 2010

Personal Payday Loan Cautionary Steps

Making application for a personal loan is a big financial step to take. Most often you take this route due to a pressing need for cash -- so strong emotions are more likely to be attached so taking precautionary steps must be part of this decision making choice.

Initial Steps To Take
First and foremost, you need to make sure that you have all the information available to make a sound selection that will not come back later to haunt you -- placing you in an even worse predicament.

Prior to making any applications, read whatever version of the Money news you find interesting that keeps you abreast of the current developments and trends in financial markets so that you can take this into account. Such news often provide new laws,regulations and maximum interest rates that can be charged. Recently, state laws could have been passed that impact how these loans can or can not be made.

There is somewhat of a connection between the money news that you read and the kind of pay day loans that you get. It's important to remember that the more informed you are the more research you'll do when you set out to get an online payday loan.

By no means am I promoting payday loans -- the opposition out there is substantial. The strong dissenting opinion about these loans revolve around the high interest rate and consumer dependence on them for living expenses rather than meeting an occasional emergency occurrence.

However, the truth of the matter is, there are many consumers who have found this type of loan acceptable for their needs and financial situation, especially individuals with low to moderate incomes who tend to fall in minority groups.

So instead of being critical of the action of pursuing payday loans, I decided to provide some informative actions consumers can take in advance that will assist them when choosing this option.

Why am I writing about this topic on my online marketing blog? Well simply, many of these companies are on the Internet now and promote heavily using Google adwords to find new customers. Therefore, it's of the up-most importance that you pay close attention to certain areas on the websites, specific wording and conduct your due diligence about their company services.

About Us Section

One of the first places you want to read on the website contains some of the best information when you're in the process of making a decision -- the 'about us' link. When you arrive at the About Us section, it is most often a brief summary of the payday company's history that can be very beneficial.

Reading that section is a lot like reading the money news to get the correct information about any financial moves you are about to make. You'll also want to take a look at the 'How it Works' section of the website.

This is the segment that should provide specific details for obtaining a payday loan from the company. There are some things that you want to look for here and they include the online application process that usually only take a few minutes to complete (more on that later).

Generally, applicants for these loans are most concerned with speed of receiving funds and an easy process. Therefore, they want to do business with a company that can approve them either instantly or within five to 10 minutes. Rarely do these companies complete credit checks. Yet, in all cases I am aware of, you will need to provide your social security number.

Here, you want to take precaution before entering your social security number because it's very difficult sometimes to distinguish an actual payday loan company from a referral source who takes and submits your information to many personal loan companies.

When opting for the online application, make sure you are sending your information directly to an actual personal loan company and NOT a "third party". In most cases you will only be required to submit income documentation to qualify for the loan.

You will want to read the 'Contact Us' section, write down the phone number for the company, then call and speak with a 'live' person to get ALL of your questions answered BEFORE you submit ANY online application. Make sure you get the person's name you are speaking with, their extension and ask if you can call back to make the application by phone later... because this is absolutely step you want to take if it is your FIRST TIME doing business with the company.

If the response is that you must make this first application online, I would keep looking for others where this is not a requirement. Reputable companies understand this reluctance and will input your information for you over the phone and give you the same decision, in the same amount of time that you would if applying online.

After you have done your website research and contacted the company, there a a few more steps you want to take before making the actual phone application (you notice I said phone, not online).

1. Do a Google Search of company name
2. Do a Google search of officer names you found in 'About Us' or 'Contact Us'
3. Do a Google search of payday loan company scams
4. Go to Better Business Bureau and check out company for complaints and problems
5. Check Company with FTC (Federal Trade Commission) of pending and prior actions.

If all is well, then call back and make your phone application. After you have completed your first loan and repayment of that loan; only then, should you consider making an online application.

Armed with this kind of information, you'll be able to make the right decision about whatever kind of personal loan you choose.

Christine Range