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 loans. 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? 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 loan 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 pay it back early. 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 an lender who allows this you can get the cash you need and avoid huge interest payments as the days go on.
Shop around for the best 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 you live in Cincinnati or Columbus, you would for sure get a few quotes from the local mortgage providers. Why not do the same with online cash advance services as well? There are different payday loan companies who 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 payday loans 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 payday loan company will always turn down your offer. Once you settle on an online payday loan service in OH 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. Most lenders in Ohio know what it takes to process a loan and they often have flexibility when it comes to rates and terms. It doesn’t hurt to ask!
Make 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. You can also read up on the amount of payday loans you can have at any given time. 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 offshore services will avoid Ohio payday and installment loan regulations. Some will say they don’t have a physical presence in the State. Some will say they operate online only and aren’t subject to interest rate caps and limits on certain fees and contract terms. Do you homework and know the company who provides your loan. Contact the Ohio Department of Commerce to get more information on any prospective payday loan company. You can also look up your lender at the Division of Financial Institutions License Search page. Even though you payday lender will tell you their licensed, it doesn’t hurt to do this research on your own. Another thing to consider is the rapid pace of updates and changes 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. Stay tuned over the next few months as we should have more updates. In the meantime you can check out a Guidance Report issues by the Department of Commerce about House Bill 123.