Features to consider before deciding on payday loans

The single most important feature of any product and loans being no exception is the cost associated with it. Typically the cost of payday loans are measured through the Annual Percentage Rate (APR%) which annualizes the interest cost associated with the short term borrowing.

The average cost of 14 day term payday loans ranges between 400%-800% with shorter term loans having higher APR. Although APR measure is a useful measure for comparison purposes it is also important to note the dollar costs associated with the loan. In comparison other forms of cash advances like credit card cash advances incur an APR cost of approximately 60%.

How fast does the loan get approved? Some with urgent needs will be interested in the speed at which the payday loan is approved. Is the lender flexible with the loan amounts?

What are the customer service like, are emails and phone queries answer promptly? Is the website user friendly?

Is the application process straight forward or is it onerous? Is it truly fax free and hence does not require bank statements, phone bills etc to be faxed?

The requirements to obtain payday loans are minimal, with lenders usually requiring a open bank account, steady source of income and identification. Full credit checks are not usually conducted nor are detailed questions asked.