Accidents, emergencies, and chaos are bound to happen in life. Sometimes you may end up needing access to funds quickly to pay for these emergencies.
When the unexpected comes up in life and it’s good to know you have a way to pay for what you need when you need to.
This is where payday loans come in handy. The application process is fast and easy and you’ll have access to the funds you need quickly.
If you’re considering getting a payday loan, check out the guide below for everything you need to know about payday loans.
What is a Payroll Loan or a Payday Loan?
Let’s begin by getting the basics down of what a payday loan is. A payday loan is money you borrow to float you through an emergency typically, until your next payday. These fast loans are also known as cash advance loans.
Payday loans are usually short-term loans that are borrowed at a premium. The lending terms may only go until your next payday. Payday loans are typically for a small amount of money under $1,000 or less.
You can obtain a payday loan from an online bank, a traditional bank, or a payday loan retailer store.
Your payday loan payment will typically be due in the form of one payment on the date of your next paycheck.
How Does a Payday Loan Work?
When applying for a payday loan, you’ll first determine with your lender how much money you’ll need to borrow. After a fairly short application period, your funds will be deposited into your bank account.
Before receiving the funds you will agree upon a set payback time and amount with your lender. You will need to electronically sign the paperwork saying that you agree to their terms, fees, and interest rates.
To payback a payday loan, in most cases your lender will automatically debit the funds from your bank account electronically. You may also be eligible to renew your loan where you delay the payback period for a short amount of time.
In some cases, you may be able to make installment payments. These payments will be made over a set duration of time and you won’t need to pay off the full amount in one payment. Just make sure you have read up on the fees and interest rates you’ll be paying by renewing a loan or making installment payments.
How to Find the Best Payday Loan Lender?
Choosing the best payday loan lender for you can seem like an intimidating process. While there are several different online payday loan companies out there, how is one better for you than another?
First and foremost, you should always feel comfortable with your lender. The last thing you want to do when you’re in a financial bind or crisis is to also deal with the stress of working with a lender you aren’t comfortable with.
The next most important traits are that you can obtain your funds quickly and that the loan application process is simple. If you apply for funds and it takes weeks to get approved, that payday lender probably isn’t for you.
Payday Loan Lender Qualities to Look For
When choosing a payday loan company look for one that is professional, reputable, and has a lot of reviews. Take the time to read reviews, ask friends, and talk with the lender over the phone so that you feel comfortable.
Rules, fees, and penalties also vary by the providence in which you live. Make sure you go over all of the costs and fees associated with the loan.
You don’t want to be surprised by anything and the lender will want to make sure everything is clear before you begin the process.
Uses for a Payday Loan
There are a lot of reasons why someone may need a payday loan. These quick cash loans are designed to help get you through a hard time. From medical or home repair emergencies to overdue accounts and bills, life is full of the unexpected.
Here is a list of some of the most common reasons to take out payday loans.
Car Repairs
Depending on where you live, you probably rely on your car to get everywhere. When you car breaks down or needs repairs, you need to get it fixed quickly in order to get to work and get on with life.
A payday loan can help you get the cash you need to fix your car. You can then pay back your loan once you receive your next paycheck.
Medical Emergency
When it comes to medical care, time is something you don’t want to mess with. Putting off treatment when you or your loved one needs it most, isn’t an option. The life and health of you, your family, and your children is far more important than money.
If a medical emergency arises and you’re in between paydays, a payday loan can help.
Utility Bills
If you have hit some hard financial times, your utility bills may be piling up. You need the heat on and your water to be running in order to properly care for your family.
If financial hardship has caused any of your utilities to be shut off, you can use a payday loan to pay your bills.
Creditors
During hard financial times, it’s easy to get past due on bills. Eventually, your account may be put into collections and you will start receiving calls from debt collectors. A payday loan may be able to help you pay your bill and get out of collections.
Make sure to stay on top of your payday loan payment as well as the collections account. Failure to do so could result in a repeat of the same terrible cycle.
How to Apply for Payday Loans
Applying for payday loans is a pretty simple and fast process. With no credit check, you can usually be approved and offered funds within 24-48 hours. Access to cash when you need it most can be a lifesaver.
If you’re ready to learn more information and speak with a professional payday loan lender, get started by calling or filling out the form here.
