A quick comparison of online payday lenders will ensure that you are receiving the best possible rate on your next payday loan. However, aside from looking at the obvious, there are a number of factors you will want to consider before choosing a payday lender.

Payday lenders located within the United States are required by law to post their rates, fees, terms and conditions. Therefore, if the payday lender you are considering does not have this information available on their website, it is best to look elsewhere, as you may be dealing with a disreputable company.

With that said, there are four factors to consider when researching payday loans:

• Rates - One of the most important points to consider is the interest rates of various loans. Luckily, the power of the Internet will ensure that you are able to find the most competitive interest rates. Although APR may not be the most accurate way of describing the interest rates on payday advances, the Truth in Lending laws require that payday lenders post their interest rates in this fashion. Look for a section in the loan's terms and conditions called: APR Disclosure, APR FAQ, Loan Rates, or Loan Information. If you are unable to find this information, you may want to contact the lender regarding their current APR.

• Fees - Unfortunately, interest charges are not the only costs you will pay when receiving a payday loan. Some payday lenders charge processing fees or flat loan fees. This information should be disclosed along with the loan's APR, thereby allowing you to fully understand the true cost of the loan. In other words, if you compare loans based on their APRs alone, you could be cheating yourself out of the most competitive loans. Consider ALL fees when comparing loans.

• Terms and Conditions of the Loan - The terms and conditions of the online payday loan may make a big difference in whether the loan is right for you. Some of the terms and conditions you may look for include: minimum payments, loan repayment period, delayed payment fees, and the maximum amount of money you can borrow. For example, you may find a payday loan that offers great rates and easy repayment terms, but they may have a cap on the amount of money that you can borrow. If this amount is less than you need then, of course, the loan is not right for you. It is therefore important to thoroughly read and understand all of the loan's conditions and terms before applying for an online payday loan.



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