Payday loans have definitely become a very popular option for those who need to borrow money for some sort of emergency/unexpected expense. Whether it is a crucial home repair or an emergency room bill, chances are you have some kind of bill you need paid but don’t have the cash to cover it. This article will take you through the step by step process of getting a payday loan so you will know what to do and what to expect.
Applying for a Payday Loan
The first step in the process of getting a payday loan is to apply for one. You can apply for this type of loan online, so you won’t even need to leave the comfort of your own home. It shouldn’t take you very long to apply for this sort of loan, but you will need to submit some basic information that will be used to determine your eligibility. These lenders typically ask for proof of income so they can be sure that you actually make enough money to pay back your loan in full and on time.
Wait to hear back
The next step in getting a payday loan is to simply wait to hear back from the lender to see if your application was approved. You should find out if you were approved for a loan within 24-48 hours after submitting your application, depending on when you chose to submit it. It’s always better to submit loan applications on Monday or Tuesday so they will be processed as quickly as possible.
Receive your Funds
If you have been approved for a payday loan, your funds will be electronically deposited into your checking account. You should get your funds within 24 hours of being approved, unless of course it is a weekend. One of the great things about getting a payday loan is that you will likely receive your funds very quickly, which makes it an ideal option for those who are in a time sensitive situation. If you need to get your car fixed as soon as possible so you’ll have a way of getting to work, a payday loan can most certainly help. If you are in fact approved for a payday loan, you should receive an email or phone call telling you this.
Paying back your loan
It is crucial that you pay your loan back on time, and you will have about 2 weeks to do it. A vast majority of payday loans have a 2 week payback period, so you will need to keep this in mind. You will essentially have until your next paycheck to pay back your loan. If you are late paying back your loan, you will most likely be charged a fee every single day that you are late on payment.
There are also repercussions if you do not pay your loan back at all. Those who fail to pay back their loan altogether can expect a big negative mark on their credit history, which in turn will lower their score. This means that you will want to do everything in your power to pay back your loan in full and on time.
Things to consider
There are going to be quite a few different things to consider when it comes to getting a payday loan, and it’s certainly not something that you will want to rush into by any means. The more time you take to consider the following things, the better off you are going to be overall.
You will definitely want to read the fine print of the loan contract you sign, because failing to do so could have dire consequences. There are a lot of things in the contract that you will want to be aware of, including the specific date that your loan is due. It is crucial that you know when exactly you need to pay back your loan so that you don’t end up being late.
Make sure that you are confident that you will be able to pay back the entirety of the loan you take out, because otherwise you will most likely have to pay much more in late fees. One of the biggest mistakes that people who take out a payday loan make is that they take out too much and can’t pay it back.
Never borrow more than you need, because it’s just unnecessary and you will most likely end up having problems paying it all back on time. You should also spend some time looking for the right lender to borrow from, as there are going to be a number of options to consider. The more time you take to do this research the better, because the lender you select will have a big impact on how good of a deal you get on your loan.