A pay day loan is a very helpful option for somebody who needs money right away. However, it is not always the best solution for someone’s urgent money needs. One benefit that you can get from these loans is that you maintain your credit score since you do not fall behind on a bill or a credit payment. But remember that these loans come with fees and interest rates that you have to take care of. It is of great importance that you have access to a financing option when the situation is urgent especially since a pay day loan does not require a credit check. But you also do have to evaluate how you use the money from this loan and measure the cost against the benefit.
Payday loans are literally short-term loans that come in small amounts. These loans are meant to be repaid when you get your following paycheck. This means that you only hold the money for a few days after you get it in your bank account. The amount that you get is quite low, only enough to pay for the urgent expenses that come your way. This is why it is not a very viable solution for a large expense such as a home repair.
You can mostly get a pay day loan online. When you do comparison shopping for the top options available to you, remember to look for a lender that does not charge application fees. Look for one that has a low interest rate compared to others and also go for a lender that does not charge a high fee. Make sure that you look at your other options before settling on the final one.
Your pay day loan can also be approved online. Applying for one only takes a couple of minutes. The first thing that you have to do is to correctly fill out the application form that you will find on the website of the lender that you chose. They might ask for your contact details as well as those of your employer. They will check your wage level, your employment history, and other pertinent information. They might ask for the number of your company’s human resources department to confirm the details that you submitted to them.
Once the pay day loan lender has confirmed your employment details and you have all the information in order, they will most likely approve the application. Sometimes you might be dealing with middlemen so they will forward the application to the actual lender. If you do it this way, remember not to make unusual demands since the middleman is not the one who will approve the loan or transfer the money to your bank account. They are simply there to assist you with the application and to confirm the details that you submitted.
The pay day loan lender will let you know how much you can borrow at any given time. You often cannot negotiate regarding this since this is a maximum value set for all their borrowers. You are also not advised to go for the maximum amount that the company can lend unless it can easily be covered by your paycheck. There is no reason why you cannot borrow a smaller amount unless there is also a minimum value set by the lender.
Before the pay day loan proceeds can be transferred to your bank account, you will have to agree with terms and conditions set by the lender. This can include giving the lender the right to automatically deduct the value of the loan plus corresponding fees from your savings or checking account come the next payday.
Once you have signed the agreement for the loan, the lender will now transfer the amount in the account that you specified. Some might be able to give you the money within 24 hours but other might take up to 72. It is not advisable to apply for the pay day loan when the workweek is ending because the approval can fall on a weekend and so you will not get the money until Tuesday.
Make sure that you go through all the provisions of the loan agreement. Find out what the procedures will be in case you are not able to pay back the money on time.