Payday loans let you borrow money against a future paycheck. They’re typically very expensive — annual percentage rates that run up to several hundred percent a year are common.
If you need to take one, shop around for the lowest rate and fee. Before taking the loan, build a plan so that you can pay it back after your next pay day and not have to take another one (and pay another fee).
Then try to save a few dollars a day, every day, so that you can build up your own fund that you can borrow from in emergencies. Finally, check your credit report — a good score may qualify you for a more traditional loan (with much lower interest).
About the Author
Solomon Poretsky has been a writer since 1996, with experience in the fields of financial services, real estate and technology. Poretsky holds a Bachelor of Arts in political science from Columbia University.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.