As with any financial decision, it’s important to do adequate research before taking a payday loan. There are many trustworthy payday lenders available, but there are also predatory companies who maximize profits through dishonest dealings. Make sure you’ve received acceptable answers to the following questions before choosing your payday lender:

1. Is the company an accredited member of the Financial Services Centers of America (FISCA)?
2. Is the payday lender rated highly by the Better Business Bureau?
3. What are the applicable fees and interest rates? Are penalties assessed for early payment?
4. Can the payday loan be extended or renewed, if necessary?
5. Are there upfront lending fees? Are the cash advance rates competitive?
6. Is there a credit check? Does the payday lender offer loans to people with low credit scores?
7. Is there an application fee?
8. Will my personal and financial information be shared with other parties?

It’s easy to become discouraged if you’re faced with obtaining a payday loans. Many financial advisors—along with friends and neighbors—are critical of the economic tool. However, recent studies by scholars at Yale, Dartmouth and the Buckeye Institute for Public Policy indicate that payday lenders can offer financial hope to consumers who prudently use cash advance loans. “Despite their high cost, payday loans appear to increase the welfare of consumers by enabling them to survive unexpected expenses or interruptions in income,” stated Clemson University economists after examining payday lending trends from 1999 to 2006.

- Edwin, CashTheChecks.com