Filed under: Payday Loans — at: 4:07 PM
Whether you are in a bind for extra, emergency money, or you are just in need of money before your next pay check arrives, it is comforting to know that there is an easy method of getting cash that does not involve equity in Fort Knox or a stellar set of credit report ratings. Even if you currently do not own a single credit card, it is very possible to get cash in your hands well before you see you next pay period. You can get your influx of money and have absolutely no credit card in hand and without ever having seen a credit card application. So, you say that you have a long history of bad debts, unpaid bills and that bankers laugh at you when you ask them if it is possible to get a loan from them. That is just fine and does not matter one bit when you seek out a online payday loans, because this form of loan is one of the easiest methods for securing instant cash.
How to Get a Payday Loan
Apply for a bank loan and you discover that first of all, the process requires a personal visit to the banking establishment. You’re never going to get a traditional bank loan with just an online visit. Then, there are long sets of lengthy forms to fill out. Sometimes it not only takes hours, but days to fill out the forms. You will be required to provide references, other examples of credit that indicate successful payments, along with a list of items of value that can be secured by the bank for collateral in order to get the loan. The approval process involves days to check your previous credit record. One of the national credit tracking agencies is hired by the bank where you are applying for the loan, which after several days of investigation, informs the bank of your complete credit history. This third-party credit validation often takes over a week to complete and it sometimes can involve several weeks of your precious time. If you need fast cash, you are simply out of luck. To make matters even worse, if you happen to possess a poor credit history, it is a guarantee that knocks you out of receiving the loan which you desire from the traditional bank.
But, when you apply for a payday loan, the form is short and sweet. Instead of taking hours to complete, a payday loan application can be finished in mere minutes. There is a minimum age. You need to be at least 18 years old. There is often a requirement that you are a citizen in the country where you are applying for a payday loan. You need to have valid, full-time employment. Usually pay stubs or a proof of income in the form of bank statements are sufficient to indicate a job to the payday loan business. Plus, there is usually a minimum income level. Most payday loan establishments require an income of at least $1,000 per month.
Other payday loan requirements might include a Social Security number, a driver’s license number, current home and work telephone numbers, a valid e-mail address, proof that your employment is full-time, or proof you have held a job for over 90 days. Some payday loan companies disqualify applicants who have recent records of bankruptcy, but this is not a common point in determining payday loan acceptability.
Payday loans are short term loans on your next paycheck. Without a hassle, you are given emergency cash with a promise made by you that you will pay back the amount that you are loaned by the payday loan business to them from your next pay check. Since they are simple and fast, payday loans are an increasingly popular method of obtaining fast cash when wallets and purses are drained of money.
Steps to Use When Considering Getting a Payday Loan
If you get into a situation where you require money that just does not exist, you should not feel guilty that you have failed in any manner. There are moments in almost everyone’s life when moths start flying out of checking accounts, instead of cold, hard cash. Unexpected emergencies, such as automotive breakdowns, unexpected sicknesses, or household breakdowns, such as a broken refrigerator or stove, can put a squeeze on your budget. And, there is always that last minute Christmas gift before December 25th that adds up to more money than originally planned. That is when payday loaners save the day.
The key is to determining a payday loan amount is to get a loan that matches your needs and that comes in below the amount of your next paycheck. A successful payday loan is one that you can pay back quickly. You should not try to get a payday loan if there will be insufficient funds in your bank account to pay for the loan when your next pay period comes around.
Your next step is to find a payday loan “store” in your community. If you live in the states of Maine, New Hampshire, Vermont, Connecticut, Massachusetts, New York, Pennsylvania, New Jersey, Maryland, West Virginia, Kentucky, North Carolina, Georgia, or Arizona, you will not find a “brick and mortar” payday loan establishment, since payday loan businesses are illegal in these states. Any other U.S. state, Canadian province, all of the UK and throughout Australia have payday loan businesses.
Before you take out a payday loan, realize that they exist as a method to obtain a short-term loan that is secured against your next paycheck. Like any loan, they need to be paid back, along with the finance charge associated with them, which you are charged as a privilege for receiving the cash. Like most any “product” that you purchase, a payday loan is not free.
As mentioned above, applying for a payday loan is fast and very easy. Contrary to banking establishments that seldom give loans to customers with poor credit, payday loan businesses simply want to know that you have a full-time pay check. The reason for a simpler loan application is because payday loans are designed as a short-term emergency money option, not as a method of taking a customer out of a long-term financial difficulty. And, since a payday loan company needs to be able to get paid, it is no surprise that when you visit a local payday loan store, you will need to take your checkbook in order to write a post-dated check as part of the payment process.
Payday loan stores check very little, but it is a mistake to assume that a payday loan business only checks to see that you work at a full-time place of employment. Most payday loan companies will check to ensure your bank account is in good standing. If there is a record of overdrafts or a negative balance on your checking account, it might be hard to get a payday loan.
Giving out accurate information is essential when applying for a payday loan. A fast rejection is certain if your application is less than truthful. Even if you think that the truth might be the means to a payday loan rejection, accurate information is still very essential. The chances are high that correct information wins the day in the successful acquiring of any payday loan.
The Payday Loan Process That Gives You Cash
Once you are approved to receive your new payday loan, you will be asked to write a check dated on the precise day of your next pay period. You will write the check out for the amount of your loan, plus the finance fee charged by the payday loan business. Let’s say the payday loan business is loaning you $100. They might charge you a finance fee of $17.50 for that $100 loan. So, your check will be written for $117.50, which pays back the $100 and pays the payday loan store its $17.50 finance charge.
On the date of that check, or your next pay period, you are expected by the payday loan company to come back into the payday loan store and pay off your loan. Another option available to you is to rollover your loan on the date of your next pay period. If you elect the rollover option, the payday loan business charges you another finance fee. In the example outlined here, another $17.50 is tacked onto the $117.50 to give you a new total of $135. If you do not show up in person at the payday loan business, that loaner can put your predated check through for payment.
Some payday loan entities also allow incremental payment installments. An example involves paying back your payday loan over four pay periods, instead of in one lump sum at your next payday. Each payment installment gets a finance fee included with the payment. So, using the example above, four loan payments would increase your total bill by four times $17.50 or $70 for a grand total of $170, when you add the principal of $100 for the original payday loan.
Savings Bank Accounts Work, Too
It is not necessary to only possess a checking account when you get a payday loan. Savings accounts are equally as important as checking accounts in allowing you to get your payroll loan amount. Procedures for obtaining your payroll loan are the same with savings accounts as when checking accounts are used. Online payday loan entities can electronically credit money to your savings account. “Brick and mortar” payday establishments can take savings account withdrawal slips, just as they take checking account checks for the payment of the loan.