Step by Step Guide to Get a Payday Loan
Although you may not want to avail of loans, you cannot prevent certain events from happening and getting a loan can be your only choice. Getting it can be challenging with a bad or poor credit score. Thankfully, this option is still available for you.
What is a Payday Loan?
A payday loan is a short-term credit intended for borrowers who need fast funding. This type of loan is an unsecured loan because it does not require collateral from borrowers. Some payday loan lenders don’t check their borrower’s credit scores, making it a good choice for people with bad credit histories.
A payday loan repayment is usually through a lump sum payment on the borrower’s next payday. Depending on the lender, repayment can extend up to 45 days. Some lenders require their borrowers to have a post-dated check with the loan amount, interest, and other charges to repay loans.
How Much Can You Borrow on a Payday Loan?
The loanable amount of payday loans depends on the laws of your state. It can range from $50 to $1,000. Some states limit payday loans to 25% of the borrower’s monthly income.
How to Avail Payday Loans?
To avail of payday loans, you must pass all the requirements required by the lender. The general ones include:
- Being of legal age (at least 18 years old)
- Being a permanent resident of the United States
- Having a reliable source of income or regular pension
- Having a valid government-issued identification card
- Having a checking or savings account (few lenders may not require this)
Some lenders may have additional requirements aside from the list above.
If you pass all the requirements to avail of payday loans, below are the step by step guide to get a payday loan:
Compare Payday Loan Lenders
Before deciding where to file your loan application, you should compare and understand the lender’s terms and conditions.
Accomplish the Online Application Form
Make sure to give the correct information to prevent any problems in the future. When filling out the form, ensure that there are no mistakes.
Present Required Documents and Sign the Credit Agreement
Every lender will ask their borrowers to present payroll slips to verify the amount of income and bank information to process the payment.
Lenders Will Deposit the Fund
After your application has been approved, the fund will be deposited into your account. Some loans offer overnight funding, but the average is 24-48 hours.
How to Pay Payday Loans?
Lenders often give borrowers two weeks to one month to repay the loan. This will be enough until the next paycheck. Below are some ways to repay the loan:
- Post-dated Check. Upon loan application, some lenders let their borrowers write a post-dated check. The check will be cashed out by the lender on the loan’s due date.
- Debit Card. Borrowers can repay through auto-debit arrangements. The borrowers will allow the lenders to deduct the repayment on their debit cards.
Payday loans are a quick and easy way to fund financial emergencies. However, you have to remember that getting a loan comes with a responsibility. You must repay the loan or before the due date.