Plenty of people have thought about taking out a payday loan, but few people know exactly how they work. While payday loans do have high interest rates, they can be helpful in emergency situations. Keep reading for more information about payday loans and how you can use them wisely.Always look at a payday loan as your last option. Even cash advances from credit cards can cost less than in interest than that of a payday loan. Consider asking for an advance at work or borrowing money from a family member or close friend.You shouldn’t expect to acquire loans from reputable lenders through the phone. An online submission of the application is the general procedure these days. After the application is approved, you can finish up any other business by phone. You will also be able to contact the customer service team over the phone with any questions you may have.In some cases, there are no other options, but you are probably considering a loan due to some unforeseen circumstances. Make sure that the emotional shock of the unforeseen event has worn off before you make any financial decisions.The average APR for a payday loan is around 650 percent. This changes a little depending on what state you live in, though not by much. The absence of such a figure in your loan papers is not necessarily an indication that your loan is cheaper. They may have just put the number in the small print where it’s not easily found.Use fast loans if you do not have any other option. Try not to use a payday loan in order to buy clothes or as payment for a trip. The interest rates on payday loans can are often so high and have excessive fees so that they end up being much more costly than expected.If you must take out a fast loan even though there aren’t any lenders in your area, you might have to go to the closest state line. Sometimes, you can actually cross into another state where payday loans are legal and get a bridge loan there. Since the actual movement of money is handled electronically, this process usually requires only a single trip.Do not think that you have won with a payday loan. Your paperwork will have all of the rules and regulations of the payday loan and other ways they can charge you fees. If you aren’t aware of these factors, it could cause you a lot of financial trouble.Always be sure that you have the funds to make the payments when they are due. If you need more funds than you can pay back quickly, pursue other options. There are many lenders available who will let you pay the loan over an extended period.If you are going to do business with a payday lender that works with you long-distance, such as over the phone or online, try and find one that does not require faxing. Though it may be an expectation by some lenders, it is a good bet that you don’t own a fax machine or have one readily available. This could mean that you have to go to a separate company just to fax the documents you need, and this could be avoided if the lender does not use fax.If your lender charges you more than 20% of what you borrowed in diverse fees, look for another service. Payday loan rates are quite high, but they should never be higher than this benchmark.Look around for the lowest interest rates. There are loan companies you can visit, but you can also find some online. They are all trying to attract your business and compete mainly on price. Many lenders offer first-time customers a discount. Prior to committing to a lender, be sure you know what choices you have.When considering payday lenders, shop around. Avoid borrowing more money than you need just because it is available to you. Do some research and you will avoid wasting your time applying at companies that will offer you less than the amount you wish to borrow.Before accepting a payday loan, ensure you understand the fees and interest related to the loan. You can avoid any surprises by reading the terms and conditions.Don’t think that you automatically have everything taken care of once you secure a payday loan. You must keep all paperwork close at hand so that you do not neglect to make timely payments. If you don’t pay it on time, they may charge you a large amount in fees.If you must buy something or pay for an item immediately and you cannot get any money in another way, you might think about a loan on the short-term. Use them wisely, (don’t make a habit of them) and payday loans could be the right choice for you!