Payday loans are basically meant for people who are in need of quick money before their next payday. The main purpose of this type of loan is quick and easy money for taking care of life’s urgent and little emergencies.
Is It Easy To Get A Payday Loan?
It being a short duration loan has a high rate of interest. The amount of the loan that is borrowed ranges from $50-$500. You can get such payday loans from a lender or a company that at times offers some convenient financial service like license processing and foreign currency exchange. The process of getting a payday loan is very simple. It is mentioned as follows:
Find An Income Proof: A payday lender will require some income proof. So get hold of your pay slips or bank statements that show the amount that you have received for your employment.
Keep Handy Proper Personal Identification: When you apply for a payday loan, the lender will wish to have a look at your ID to check that you are a resident of the state from where you are applying the loan. So you must have an ID that is issued by the state like an identification card or a driver’s license.
Get Hold Of A Blank Check: Some lenders will not only require a proof to check that you hold bank account in your name, but will also ensure that you repay the loan on time by getting a blank check from you. If your loan is due, then he will cash your check. The check needs to be kept blank so that the necessary amount can be filled after you and the payday lender had a conversation and agreed on the fees that will be applicable on the loan.
Find Lenders: You can lookout for a payday lender online or in your phone book. These days most of the companies are seen to offer payday loans online. You need to submit the application of the payday loan online and then the money will get deposited in your bank account. You need to search online to check if payday loans are available in your state or not because all states do not allow payday lending.
Research Well About The Lender: Many scammers are present in this field. You need to investigate carefully to find out whether the lender is genuine or not before you apply for the loan. Perform an internet search to check out the reputation of the company. If you find many complaints that are lodged against any payday lender or you are not sure of lending money from anyone, then consider any other alternative.
Discuss About Fees And Rate Of Interest: You must ask the lender about everything that they will be charging, because they might make huge money by charging high interest and fees for several reasons. For example, a fee will be charged on a payday loan for applying for it. It is known as service fee. Some lenders may charge you a fee for withdrawing money from your bank account too.
Understand Everything: You need to understand each and everything clearly about your payday loan. A lender might hide some important information from you. Ask him well when the loan will be due and also get it in writing. As a borrower you will also prefer to get a payday loan from such a lender who will give you a lot of option to repay your loan. So always ask a payday lender whether you can repay the loan early, what happens if you do not have the amount to cover the repayment and also if they charge anything for doing these. Always ensure that you understand the amount they will be charging you if you extend your loan.
Complete The Application: Each of the payday lenders have their own application. But they will in general need information regarding your employer, annual earning, date of birth, phone number, address along with SCN or Social Security Number.
Receive The Money: The lender will deposit the approved loan amount in your bank account. He might also give you a check for it.
Repay On Time: A lender will hold your written check for the loan term for 2 weeks. As soon as the term is over, he will cash the check or debit your bank account. It will pay back the loan and lender’s fee too. But repayment on time will let you borrow another payday loan when required.
Extend Or Apply For A Rollover: If you are unable to afford for your check to get cashed by your lender, then you extend the loan term or apply for a rollover. It is usually for another 14 days. The lender will be applying another fee but you will not lose your chance for applying for another payday loan in future.
Before you take a payday loan, always carefully think about how you will repay it. Never borrow more than you are aware you will able to repay quickly.