3 Tips to Know When You Apply For a Payday Loan

Posted · Add Comment

Are you getting ready to take out an online cash advance? We know there’s a lot to take in when you first consider a payday loan or installment loan. The online lending environment here in Ohio is confusing and more complicated than it needs to be. When you first look at financing contracts and fine print for applications you can be overwhelmed and put off. Let us make things easier for you by providing 3 easy tips to know when you’re first shopping for a payday loan. This doesn’t mean you don’t need to do your homework and read through the necessary documents. Here are 3 important things to know before you apply for a payday loan in Ohio.


Work with your lender to pay off your payday loan early

Because your online loan has a due date that doesn’t mean you can’t pay it off early. Did you know that most online loans in Ohio come with large finance charges and interest rates that add up as each day goes by? Follow our lending advice to find a lender that wants to work with you. Payday loans are for short term emergencies when you have no other cash options. If you take out a loan, you need to pay it back as soon as possible. You can save a lot of money by paying back a loan within a day or a week of receiving funds.

It’s worth noting, not all payday loans and cash advance services in Dayton or Toledo will allow you to make early payments. They draw up a payment contract and you need to stick to those payments even if you can manage an early payday loan offer. It makes sense to avoid a situation that doesn’t allow a prepayment. Contact your prospective lender and confirm they allow early payment with no prepayment penalty. By going with a payday lending service that allows this you can get the cash you need and avoid huge interest payments as the days go on.


Shop around for the best payday loan rates and terms

Most people think this only applies to those who are looking for a mortgage loan or traditional bank personal loan. As an example, if want to work with a payday loan company in Cleveland, you would for sure get a few quotes from the local lenders. Why not do the same with online cash advance services as well? There are different payday loan companies that want to win your business. That’s why it pays to shop around and get a quote from at least a handful of online lending companies.

Use our list of online payday lenders to help you find the best service for your financial needs. You can even meet with a few local installment loan lenders in person to get a better understanding. Don’t hesitate and assume a short term lender will always turn down your offer. Once you settle on an online payday loan service in Ohio it pays to negotiate for a better rate and terms. Tell them you are speaking with multiple service providers all throughout the state and you’re looking for the best deal on Ohio payday loans. Most lenders in Ohio know what it takes to process a loan and they often have flexibility when it comes to rates and paying off a payday loan early. It doesn’t hurt to ask for different options and you may be able to pay off the loan early!


Be sure your lender is licensed to provide online payday loans in Ohio

You’d think this would be obvious, but there are always companies out there who don’t follow the regulatory guidelines set by Ohio. Applicants can run into huge problems if they enter into a lending contract with unlicensed companies. These firms feel they aren’t subject to the rules and restrictions set in place by the Ohio Department of Commerce. Many will operate online, but target those all throughout the state in cities like Columbus and Cleveland. These statutes include things like limits on finance charges for online loans in Ohio.

Read up on the number of payday loans you can have at any given time and whether these firms allow early payoff. Use these tips to find an Ohio payday loan company you're comfortable working with We know of some collection practices which are banned in the state of Ohio. Many unlicensed firms will allow your debt to go into collection and you’ll have a difficult time dealing with these 3rd party services. Some will say they operate online only and aren’t subject to interest rate caps and limits on certain fees and contract terms.

Do your homework and know the company that provides your loan. Contact the Ohio Department of Commerce to get more information on any prospective payday loan company in Ohio. You can also lookup your lender at the Division of Financial Institutions License Search page. Even though a payday lender will tell you their license information, it doesn’t hurt to do this research on your own. Another thing to consider is the rapid pace of updates and changes that were about to see because of House Bill 123. This is the Ohio Small Loan Act and promises to bring sweeping changes to most payday loan offers in Ohio. You can read up on theĀ  Guidance Report issued by the Department of Commerce about House Bill 123.