If you have never had the experience of borrowing from a short term cash advance or payday loan lender, but you now have a small emergency and need some money fast, here’s a quick explanation of how to get a payday loan. The process is very simple, and most who apply will be approved.
Choose Your Lender
First, decide if you want to go to a neighborhood loan store, or to get your fast cash online. If you go to your local land based lender, you need to take documents with you, wait for approval, and on your due date, you will return to pay off your loan with cash. Most will want you to leave behind a fully completed check in the loan amount plus any fees. When you bring back cash to repay your loan, you can get your check back or have the clerk shred it for you.
Borrowing a Payday Loan Online
If you decide it is easier to just go online and get your loan that way, you will need a computer with Internet access. Most online lenders no longer require you to fax information to them, because everything they need to know can be entered on their short application form online.
Deposits and repayments are both done through direct deposit and withdrawal, so once you get approval, there is no need to return to the website for repayment purposes. Information or documents you will need to get a payday loan include these items: – Personal information, identification (driver’s license, social security card or numbers) – Recent bank statement – Blank check or check numbers – Employment or Income information – Personal references
What Are Payday Loans Used For?
Payday loans and cash advance loans are taken out by many people nationwide every day. These fast personal loans are used for any reason you want, from paying
bills, emergency expenses, and keeping checks from bouncing to making credit card payments on time, travel expenses, or just having fun. Unlike getting a loan from a large bank or credit union, there is no wait, no interview, and no embarrassing questions.
Do Banks Make Payday Loans?
Large financial institutions cannot make these types of small loans and make money. They are restricted from charging high interest, and small loans under $500 are just not profitable for them. The quick cash lenders can charge whatever they want, so they do operate profitably, and they can make the small loans, starting at $100. Payday loans are a good option for those who need a small personal loan.
Why Are Payday Interest Fees So High?
Fees and interest rates are high for payday loans, but in the long run it may not be an issue. Payday loans and cash advances only run in length of time until your next payday. This is usually from about a week to perhaps a month, if you are only paid monthly. APR rates are high also, from 456% to over 2000% in some cases. Most loans are from $100 to $1500. Fees per hundred normally are $15 to $25. If they are higher, it may be for an extra service, like getting a loan in faster than normal time.
Are Online Payday Loans Secure?
Reliable online lenders will post their rates, and all important information on their website. Websites should carry the SSL security gold lock icon. This means your information that you submit is encrypted against theft while in transmission. Read any frequently asked questions and customer testimonials when you are browsing websites. Review several different online lender websites before making a decision. You can compare them to find the best offers and rates. Websites should also contain a street address, and toll free telephone number. Read and understand any “small print” terms.
How Fast Are Approvals?
Most people receive approval online quickly, in minutes. With some online lenders, you can borrow up to $1500 and get your loan within one hour, deposited
into your bank account. Many take a day to complete transactions. As soon as the deposit is made, you can access your cash. At a neighborhood payday store, you will be handed cash immediately.
What If I Cannot Repay On Time?
If you are still having financial difficulty at repayment time, contact your lender to see if there are options like payment plans, renewing your loan for another period, or extending your loan. In some cases, you can simply pay them the fee and do not have to come up with the entire amount until the next due date. Others will make you pay the whole amount plus fee, and then you can take out another loan immediately. Many states have restrictions on the number of loans you can take out, usually just two, and the number of times you can take out these loans in a row without taking a break.
Is My Credit History an Issue?
Having bad credit, poor credit, or no credit history is not a deterrent to getting a payday loan. Even people who have gone through a bankruptcy can obtain payday loans or cash advances. This is because no one will check on your credit history. Payday loans are not a form of credit. Loan Advisor has their own system to see if you have other loans, or if you are a non-payer. Military personnel cannot take out
payday loans or cash advance loans.
Is There a Difference?
Some people prefer to get their payday loan online because it saves them time and money. They can get their loan in complete privacy on their own computer, and do not have to drive to the store or their bank for cash or to make the repayments. Other people like to work with cash at a local lending store in their neighborhood.
Payday loans are very convenient, but they should not be used as a source of income. If you need more income, sell something, or find a second or third job to work. These loans are great for occasional use, for emergencies or fun.