If you’re looking for a pay day loan then it does not have to be an exercise in frustration. It might very well be that you are in an emergency situation and you need a few hundred dollars before pay day arrives, but because of some negative items on your credit history, the bank is unable to provide you with the up front cash you need.

There are many businesses that can help you out in a situation like this, provided they are legitimate, legal companies. You will probably pay a higher rate of interest than you would at a bank, but if this is your only choice then there is not much that you can do. Ideally you would only take out a loan like this in a true emergency anyway, knowing that you can quickly pay it back.

Even before you go for a loan

Even before you consider this option, there are steps you can take to prevent getting into emergency debt like this in the first place. As soon as you can, you should set up an “emergency savings fund” as a separate bank account. Every time you get your salary, put a percentage of your income into this fund. That way, when you do have an emergency, you have something to pay it with.

Second, if you feel that you are going to be unable to pay an upcoming credit item, you can talk to the creditor about it. Let’s say you cannot pay your next gas bill, you can arrange with your utility provider to pay over an extended period of time, in installments. While you may get a note on this in your credit history, it is still far better than defaulting on a payment.

If all else has failed

If all else has failed, and you need to pay for an emergency such as a medical issue with a family member, and you cannot get help from anyone else, then you could consider pay day loans. There are certain signs you should look out for though to make sure you are not being scammed:

1) They are not interested in your credit rating. If this is the case, why are they asking for your personal info like your SS number? Be careful, because this could be a sign that they mean to use your information for fraud elsewhere in the country.

2) Loans offered by telephone. It is against US law to offer credit by telephone.

3) A company that has a name similar to a major financial institution. They are possibly using this to confuse people into thinking they can be trusted.

4) Not registered in your state. Every company that offers credit needs to be registered in the state where they operate, so that you can call the state Attorney General’s office to enquire about them.

Make sure you investigate every pay day loans company thoroughly before you go into any sort of contract with them!