They happen. You have probably experienced at least one. We often plan for them, but we hope they don't happen.
Unfortunately, they occur more often than any of us would like. It's an emergency. An emergency is a sudden, unexpected happening which requires action in order to correct or restore to normal.
Emergencies can be extremely scary if you are not prepared. When you get in a car, you put on your seat belt in case there's an accident. Children have fire drills during the school year so they will know what to do if there is ever a fire.
We plan for emergencies to arise, and we take precautions before they happen, even if they never do. So what are you doing in case of a financial emergency?
Our economy is very fragile right now. It is very possible to have a financial emergency that can greatly affect a lot of people.
There could be a time when you will need some money very quickly and you might not have it. In those situations, there is a remedy. These emergencies are cured through the payday loan.
A payday loan, which can also be called a personal loan or cash advance, is a short-term loan usually lasting about two weeks. Cash advances usually offer smaller amounts of money than other types of loans and are paid off on the borrower's next payday. The interest of the loan is pre-decided between the lender and the borrower.
Payday advances can be found at locations all around town and online at thousands of websites. Most companies are very similar, but one of the biggest difference between them is the amount of interest they charge.
Payday lenders will show interest rates in the form of APR, which stands for Annual Percentage Rate. Since the rates are shown as annual rates, there will usually be a fairly high APR.
However, because payday loans are only two weeks long, the interest shouldn't be very much in the end. For example, a payday advance of 390% APR will only yield $15 of interest for every $100 taken out, for a total payback fee of $115.
Because there are so many companies that offer these types of loans, it is important to know which ones are completely legitimate so you know you can trustingly give out your information. Make sure the company you use is reputable and one of the leaders in the financial services industry.
Be careful with smaller companies, and be absolutely sure of their service and reputation before taking out a payday loan. It is safest to go with a bigger company.
There really isn't a big procedure to go through in order to get a little cash. There should not be a credit check or any collecting of collateral. The application for a payday loan should only be a few steps long.
Before being approved, you will have to have a steady source of income, a checking account in your name, and a state or federal identification. Unless you're online, you will probably have to write a personal check for the amount you want plus the lender's fee. The lender will hold your check until your next payday or another date you specify.
If applying online, you should never have to fax any documents or mess with any papers. Online payday advances are very convenient, but you should definitely make sure the site you are using is safe and secure.
They will ask for your full name, gross monthly income, email address, state, and checking account number. Then, as long as the application was filled out correctly, your money will be directly deposited into the bank account you provided. On your next payday, the same amount plus the interest fee will be taken out of the same account.
In case of a financial emergency, you should definitely be prepared. Know what you would need to do and where you would need to go if something went wrong and you didn't have the money you needed. You will save a lot of headache if you are prepared in advance by knowing where and how to get a payday loan.
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