Start with your budget
Estimate the amount you need and the payment you could reasonably manage after essentials such as housing, food, utilities, transportation and existing obligations.
Compare the full cost
- APR and finance charges.
- Origination, late, returned-payment and other fees.
- Payment amount, due dates and total repayment.
- Consequences of late payment or default.
- Whether early repayment is allowed and whether fees apply.
Be especially careful with short-term credit
A short repayment window can create pressure to renew or borrow again. Before taking a payday loan, consider whether the payment will leave enough for essential expenses and whether a lower-cost alternative is available.
Consider alternatives
Depending on your circumstances, you may wish to ask creditors about hardship plans, compare credit-union products, explore employer assistance, contact a local nonprofit financial counselor, or ask service providers about payment plans. Availability varies.
Protect your information
Verify the provider’s identity, read its privacy notice, avoid paying upfront fees to supposedly guarantee a loan, and do not share passwords or one-time passcodes.
Pause if terms are unclear
Do not accept a product until you understand the cost, repayment schedule and consequences. If the payment is not affordable, it may be safer to look for another option.