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Shopping Round for a Better Payday Rate, Can It Be Done?

Payday Loans > Payday Loan Articles > Article: Shopping Round for a Better Payday Rate, Can It Be Done?

Payday lenders generally charge higher interest rates than traditional lenders; however, you can still shop around to find the best deal on a payday loan. Even though payday loans carry high interest rates, there is still some variation in cost from lender to lender. You can also save money by paying attention to each lender's fees, terms, and conditions. Some lenders will charge a lower interest rate but hide steep fees and finance charges that gouge your pocketbook in the fine print. By doing your homework to compare interest rates, terms, and fees from a variety of lenders, you can ensure that you'll find a better rate payday loan.
Below are a few tips to help you find the best rates, terms and conditions on your payday loan.

1. Broaden your geographic range.
Interest rates can vary by region and even from city to city, therefore it may be worth your while to look at lenders in a wider geographic range. Because you can apply for payday loans and receive the money online, expanding your search to include lenders in nearby cities is a great way to get a good deal and find a superior rate.

2. Turn to the internet
Finance Comparison lists a number of online payday lenders. You can use this site to compare many of the best rates online.

3. Ask your friends and relatives.
It's quite likely that someone you know has already worked with a payday lender. Ask friends and family members if they've ever taken out a payday loan and find out what interest rates and fees they paid. Requesting referrals from friends and family is also a great way to ensure that you're doing business with a reputable payday lender.

4. Look past the APR.
Obviously, the interest rate on a payday loan is important; however, you should also examine every lenders terms and agreements. Does the lender charge a higher interest rate or fees for extending the loan term? Many payday lenders will assess steep charges for loan extensions, so you should understand these terms before you sign. Even if you intend to repay the loan within the original timeframe, you should understand the extra costs associated with extending the loan. If a payday lender is hesitant to share details about their fee rates or other costs, walk away.

5. Look for first-time customer discounts.
Many companies do not assess fees for first-time customers. Looking for a lender who offers savings to new customers can save you money; however, be sure to read the fine print of the agreement and evaluate the lender on other criteria before signing any loan documents.

6. Ask for a lower rate.
If you find two or more payday lenders who offer competitive pricing, you may be able to negotiate a lower rate. For instance, if one lender offers a slightly higher rate but lower fees than another lender, you may be able to convince the first lender to lower their rate in order to earn your business. While not every lender will be open to negotiation, it's certainly worthwhile to ask!
By taking the time to compare interest rates on payday loans from various lenders, you can ensure that you get the best deal on your payday loan. Expanding your search to a broader geographic range, looking for first-time customer discounts, and negotiating fees are all excellent ways to obtain the lowest interest rate possible on your payday loan. Don't forget to use the Internet, the phone book, and referrals from friends and families to expand your search. Finally, look beyond the APR to examine each lender's terms and fees before signing on the dotted line. With a little patience and lots of information, you can get the best deal possible on your payday loan.

What to do next

Finance Comparison lists a number of highly competitive payday loans that you can apply for online. Simply compare rates, terms and apply online.

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