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Understanding Interest and APR

When you're seeking out money to get into business for yourself, you're going to enter a whole new world of numbers. Your loans, mortgages, lines of credit, and credit cards will come with various interest rates and APRs attached, and you'll need to know what all of those numbers mean, or you'll be caught by surprise when you have to start making the payments. It's a good idea to sit down with a financial adviser before you start taking out loans and signing up for credit for your business. You need someone who speaks the language of finance on your side.

4 Tips To Consider Before Taking Out A Payday Loan

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At some point, you may find that you need some additional cash before your paycheck directly deposits into your account. This is used in many cases where an unexpected bill has come up that you don't have the money to pay but need to pay right away. A payday loan can help you take care of this by providing you with the cash you need so long as you agree to their terms, which is to pay them back by the time your next payday arrives. Here are four tips to consider before taking out one of these loans:

  1. Apply Directly With a Payday Loan Company: There are many third parties you can apply through online for a payday loan. It's best to avoid this and apply directly through the payday loan company. You never know what hidden fees can come with applying through a third party. You also don't want to risk giving your information, such as your social security number and banking account numbers to a third party. 
  2. Apply for the Minimum You Need: When you apply for a payday loan, be sure to apply for the amount you need and no higher. When you apply for a higher payday loan, you are going to be hit with higher interest. Besides, paying back a smaller loan is going to be much easier than paying back a high loan.
  3. Make Sure You Have the Money to Pay Back: When you apply for a payday loan, they are going to ask for your bank information. This is needed so that the payday loan company can take out the money you owe when you receive your next paycheck. Be sure that you are going to have the funds in your account to pay the company back that day. Be sure to mark down the day the payday loan will be taking out the funds so you can double check your account. If you don't have the funds, you will be charged an overdraft fee, which is just more money you have to spend unnecessarily. 
  4. Know What You Need: When you apply for a payday loan, it's important to know what you need. Almost all payday loan companies will ask that you have a checking account, as well as proof of your job, which would mean bringing a pay stub along with you when you apply. 

When you know these four tips for taking out a payday loan, you can be sure that you are utilizing the service in the best way possible. Contact a company like Cash Depot Inc. for more information.

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1 July 2016