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No matter how well you plan your finances, something unexpected always happens sooner or later. Perhaps it’s the alternator that goes out on the car, the furnace stops working or a toothache that wakes you up in the middle of the night.

When you’re desperate to find a way to cover an unexpected expense, it’s easy to think of pay day loans as the perfect solution. Remember that not all pay day loan institutions are created equal, especially when it comes to accreditation. Here are some pointers for choosing a safe and reputable payday loan company.

• Choose a company that has been doing business for at least two years to make sure it’s a legitimate company. The rip-off companies are often fly-by-night creations.
• Choose a U.S.-based business that is licensed to operate in several different states. Some companies circumnavigate lending laws by having their base of operations outside the U.S.
• Choose a lending company that does everything possible to make the process secure, quick and convenient, and lets you do everything from filling out the application to making payments on the Internet.

Remember to exercise caution when considering a payday loan because the interest keeps compounding on the principle if the loan is not paid on time. Never borrow more than 30 per cent of your total monthly income to make sure you’ll be able to meet the loan payments on time.

Payday loans might be the answer if you have a need for cash to cover something unexpected. Make sure to do your homework before you apply.