How to Apply for a Payday Loan Online Successfully – What to Know

Sep 11, 2019

 

When a person with a regular income finds themselves in sudden financial distress, they may turn to a payday loan for quick, emergency cash. However, to ensure that your payday loan application is a success, you need to consider the following tips:

 

Choose only legitimate online lenders

The lender you choose should be licensed by, and registered with, South Africa’s National Credit Regulator (NCR). The website should show the lender’s contact information, physical office address, and key leaders. Because you will use your bank data, the lender’s website should also have security mechanisms to protect your data against theft, misuse, or loss. 

 

Find lenders that charge reasonable interest rates and offers flexible time to repay

Compare the loan interest rates of various lenders before submitting your application. You can save money on service charges by going directly to the websites of lending companies and contacting them for inquiries. Then, check which lending company can offer you with the funding at the lowest reasonable cost. On the other hand, loans that offer zero or low interests may not be reputable lenders. Be wary of loan terms that are too good to be true, such as “guaranteed approval” loans.

 

Read the fine print

Before choosing your lending company, ask for draft copies of the loan agreement. Never sign a payday loan that contains terms of a contract you don’t understand. South Africa’s National Credit Act requires licensed and registered lenders to reveal key information to their borrowers. If your lender doesn’t disclose information about their interest rates, surcharges, and service fees, they are probably swindlers who will cost you much in hidden charges. Knowing the fine print would also help you prepare to pay on time.

 

Weigh the pros and cons of the payday loan

One of the downsides of payday loans is their unusually high-interest rates. You will end up with bigger liabilities if you don’t pay the money back on time. Consider the urgency of your financial situation, the availability of alternative sources of money, and your capacity to pay back the loan before the due date.

 

Borrow what you need

Don’t be tempted by offers to borrow more money than what you need. Some unscrupulous companies offer bigger take-home amounts as a marketing gimmick that will make you end up paying more interest and hidden fees. Decline any offers to borrow amounts of money more than what you need. 

 

Be honest and accurate in your application information

While payday loans are quick sources of cash for emergencies, not everyone is qualified to apply for it. Many lending companies will require you to present proof that you receive a stable income from a regular job. When applying for a payday loan, only provide truthful information that is being asked from you. Falsifying your personal or income information will make you criminally liable under the law. Jail time and fines will be the least of your concerns if your future career, reputation, and credit score will all be affected by a criminal offence.

If you are ready to apply for a Payday Loan, we’re here to help! Apply for a personal loan in South Africa online via Hoopla Loans today!