How to Get a Payday Loan


There are always times when you need cash that you simply do not have it on hand. A flat tire, a medical emergency, a bounced check, all of these can throw a crimp into your financial planning. Even a good event like friends showing up unexpectedly or an invitation out on the town or to a party can make one blue if he or she is lacking in funds. Rather than hauling your television to the pawn shop or taking a chance on being overdrawn, there is a simple solution called a payday loan.

First you should understand what a payday loan is? What is it? A payday loan is a short term loan, usually due on your next payday (hence the name) when you have the money in your account.

How do you get one? Many places offer paydays loans now that they have become popular. Check cashing stores can provide the service, as can pawn shops or even tax services. You can call and ask about interest rates and what is required ahead of time. In some cases you can even apply online or on the phone.

What do you need in order to get a payday loan? The standard procedure in securing a payday loan begins with showing proof of residency, proof of income and an active checking account. In order to do this you may need to bring in copies of bills mailed to your home, a pay stub and a current bank statement. You will need to provide the dates of when you receive your paycheck, but there is no credit check involved. If you are applying online you may need to provide a checking account and routing number. One great thing about payday loans is that you cannot be turned down. Even if your credit is bad, if you have an active checking account and a regular source of income, you can get the money you need.

The next step usually involves writing a post dated check for the amount of money you need plus the amount of interest that is being charged. While the interest charged in payday loans can be far more than those charged in traditional loans they are still small in comparison to the cost of bouncing a check. A seventeen dollar check that bounces can cost you as much as $70 by the time your bank, the payee's bank and the payee all hit you with charges. This can be avoided by floating a payday loan.

The last step is the paying back and that is done for you. On the date the loan is due, the money will be automatically drafted from your account. You don't have to worry about forgetting to pay it back or being hit with late fees. Of course you must make sure your paycheck has been deposited in the bank and can be drafted against.

Payday loans are easy and simple. All it takes is a source of income, the ability to pay back, an active bank account and proof of where you work and where you live. With a payday loan you never have to be in a financial bind again!

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