How to get a Payday Loan—A Step by Step Guide

If you are interested in getting a payday loan like so many others, it is important that you know exactly how to get one. These days a lot of people have started getting payday loans because of the numerous benefits they offer. The entire process for obtaining a payday loan is fairly simple and straightforward, but it is still crucial that you know how to get one. This step-by-step guide will give you all the information you need to get your loan.

Choose a Lender

The first step that you will have to follow when attempting to get a payday loan is to choose a lender. You can expect there to be quite a few different private lending companies that give out payday loans, but you will not want to choose just any of them to borrow from. Make sure that you spend an adequate amount of time researching your lender options so you can decide on the right one. The more time you spend doing this research, the better off you will be in the end.

Fill out the Application

Once you have found a private lender that you think you can trust, you will want to fill out an application on the company’s website. The process of filling out a payday loan application won’t take long, but you must be prepared to submit some personal and financial details, such as how much money you make with each paycheck and your social security number. The information that you provide the lender on your application will help them determine whether or not to approve you.
Wait to hear back

After you have submitted your payday loan application, all you can do is wait to hear back from the lender. You should know whether or not you have been approved for the loan you need in less than 24 hours.

Read over and sign the Contract

Next you will need to take the time to read over the contract you are given by the lender. This legally binding document will detail all the terms and conditions of your loan, including when it must be paid back, the interest rate you are going to pay on it, and other important details. It is crucial that you take the time to look this document over very carefully before signing it. A lot of people just sign the contract they are given because they are so anxious to get their money, but this is always a huge mistake. If there are any things in the contract you are confused about or don’t approve of, make sure to discuss it with the lender before giving them your signature.

Get your Money

You should receive the money you borrowed in your bank account within 24 hours of getting approved and signing the contract. The exact amount of time it will take you to get your funds will depend on a couple of different things, including what day of the week it is and the lender. A majority of people who get one of these loans receive their funds very quickly, so you won’t need to worry about waiting a long time. The money will be electronically transferred into your bank’s checking account, so you won’t have to go anywhere to collect it.

Pay it Back

You will be required to pay back the full amount of the loan within a couple of weeks after you receive the funds in your checking account. Make sure that you know the exact date you must pay your loan back by, because otherwise you will risk being late and incurring all sorts of fees. You can choose to pay your loan back early if you are able, though doing so will not affect your credit either way.

A payday loan is a great option for those who need money fast and have been turned down in the past for loans by banks and/or credit unions. The process for getting one of these loans is very quick and simple, which is one of the most attractive things about it. As long as you follow all of these steps, you shouldn’t have any issues at all.

Using a Payday Loan to Take Care of Your Emergency Expense

Many people turn to a payday loan to help them out when they have some sort of emergency expense that needs to be paid right away and simply cannot wait. There are going to be a number of things that you will need to know when it comes to getting this type of loan and using it though. The more you know about payday loans, the better off you will be overall.

What to use a Payday Loan for

There are certain situations in which it is a good idea to get a payday loan, such as if your car has won’t start and you need to get some repair work done. Another reason why you might want to get one of these loans is that there is some crucial repair you need done to your home, such as a hole in the roof that needs to be fixed. Other people apply for this sort of loan when they have a doctor’s or hospital bill that they need to get paid. If you don’t want your expense to negatively impact your credit, it is important that you look into getting a payday loan.

What not to use a Payday Loan for

You will also need to know about some of the things that you should never use a payday loan for, including new electronic gadgets (laptops, smartphones, tablets, etc.), vacations, or absolutely anything that isn’t essential. One of the bigger mistakes that people make when it comes to getting one of these loans is to use it for something they don’t really need.

Paying back your Loan

After you have used the money you have been given for whatever you need, you will eventually have to pay it back. It is important that you pay back your loan on time so your credit is not negatively affected. Make sure that you know the exact date that you need to pay your loan back by so that there is no confusion whatsoever. The last thing you want is to make the mistake of being late on paying back your loan.

Paying back your loan early

You will always have the option to pay back your loan early, though it won’t make any difference to your credit either way. If you are actually able to pay back your loan early, it is highly recommended that you do so. Most lenders won’t have any problems whatsoever with you paying your loan back before the agreed upon date, as long as it is paid in full.

Requirements for getting a Payday Loan

There are going to be certain basic criteria that you will have to meet in order to qualify for a payday loan, such as:

Be at least 18 years of age
Must be a legal citizen of the country
Have an active checking account at a bank or credit union
Provide proof of income (must make enough money to pay your loan back on time)

When you are applying for a payday loan, the lender will take a look at all of these things before deciding whether or not to give you one. If you do not satisfy all these criteria, you will not be eligible for a loan at all. Make sure that you have proof of your income on hand, because this is important information that you will need to submit if you want to be approved for this type of loan.

Choosing how much money to borrow

It is also important that you take the time to decide exactly how much money you need to borrow, because you don’t want to borrow any more than you need to. Take the time to do the math so you know just how much you need. Whether it is a car repair, home repair, medical bill or something else entirely, this is a very important step in the process. When you take out only how much you need, you will be able to pay off your expense without any issues when it comes to paying back the loan later on. In the end you will be very glad you did this.

Tips to Follow when getting a Payday Loan

There are numerous tips that you will want to follow when going about getting a payday loan. These tips will be able to help you with getting the money you need for whatever expense you have without getting into a bad situation because of it. A lot of people rush into getting a payday loan and as a result they deeply regret it shortly after.

Never take out more than you can pay back

You will never want to borrow more money than you can pay back (on time). Make sure that you do the math and crunch the numbers to figure out whether or not you will be able to pay back the loan you want on time. The last thing you want is to be late on paying back your loan, because it could mean suffering a negative hit against your credit. If you don’t end up paying back your loan on time, you could end up spending a long time paying it back before it’s all paid off.

Find a lender you can trust

The lender that you choose to borrow from will definitely be one of the more important factors to consider when applying for this type of loan. When you take the time to find a lender you can really trust, you will be able to eliminate the possibility of any issues later on, at least with your lender. There will certainly be some private lending companies in your area that are more reputable than others, so you will have to take the time to look for one that is trustworthy. In the end you will be very glad you did this.

Set up automatic debt payment

It is also a good idea that you set up automated debt payment so on the day your loan is due the money will come right out of your checking account. This way you won’t have to worry about needing to go to the bank or cutting a check for the amount of the loan. It is highly recommended that you do this, simply because it is the easiest option by far.

Only spend the money you get on what you need

Whether you are taking out a payday loan for car repairs, home repairs or even medical bills, it is important that you only spend the money you get on what you need instead of things you want. For example, it is not a good idea to take out one of these loans to help finance a vacation or get a new smartphone. Payday loans can be very useful, but they should only be used in emergency situations where an important expense needs to be paid quickly.

Have proof of income on hand

The lender that you borrow money from will more than likely need information pertaining to the amount of money you make from your job, so you will need to have that on hand. The last thing you want is to be scrambling for this information at the last minute. It is very important that you know exactly what information is going to be expected of you so that you’ll have it all ready when the time comes.

Carefully review the terms of the loan

If you have been approved for the loan you need by a certain lender, you will inevitably be given a contract with terms and conditions to sign. It is incredibly important that you take enough time to look through this contract before putting your name down on it. The terms and conditions of the loan will include many things, such as the date the loan must be paid back by as well as any fees that you will have to pay. If you don’t want to be caught off guard by anything later on, it is highly recommended that you look over the contract. Keep in mind that you are under no legal obligation to sign this contract if you don’t want to. But if you do not sign the contract, you will not get the loan.

By following these tips you will put yourself in a much better place with regards to getting the money you need without having to worry about serious issues becoming a problem later on.