First of all, what is your need? The payday loan industry is not here for people who want to borrow money to buy new toys or wardrobes. This type of borrowing can lead you into trouble very quickly with payday loans.
Payday loans are small, short-term loans to take in an emergent or urgent situation. These might be:
- A medical bill that needs to be paid quickly to receive treatment.
- Auto repairs that can't wait till your next payday.
- Bills that are due before your payday and will be issued late fees if you do not pay them.
- Any expenditure that is needed immediately that you can use your money to pay back the payday loan when you receive your paycheck.
Most lenders offer a maximum of $500. There are some that will lend up to $1500. Each state has different laws regarding payday loans so you will want to search on the internet for payday laws by state. This information is easy to find.
Now that you have assessed your need let's walk through the process.
- Find a reputable lender in your area or find one online. If you find one online, please make sure they are located in the United States. Lenders overseas will not be held to our laws if there is a dispute.
- Once you have found a lender, research them. Check the Better Business Bureau for information on them. Ask around to see if anyone has used them before.
- Apply for the loan.
- You will need:
1. Personal information for the application.
2. Pay stubs to prove you have consistent income.
3. Proof of bank account.
4. A post dated check that will clear on your payday. Some lenders will also let you do a post dated authorization to withdraw funds from your bank account.
- Sign the contract
- Get your money!
Payday loans are great options for those with bad credit as well. Payday lenders don't usually need to check your credit to approve you. Be sure to ask what the fees are if you need to rollover or extend your loan. This is not advisable unless absolutely necessary because you will be paying fees, plus more interest the longer you have the loan.
People get into a spiral of debt sometimes when availing a payday loan because they don't pay it back when they are supposed to. In a short amount of time they find themselves paying more than the loan was actually for in the first place.
Be smart when getting yourself a payday loan and plan on paying the loan back with your next paycheck or with other funds you have coming in.
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