It is very easy to get into debt; however, it is more difficult to eliminate the vicious cycle of debt that can take over your life. Before you know it, you credit card bills and other loans can accumulate, and you are just trying to have enough money to make it through the month. If emergency expenses arise and you need access to quick cash, a payday loan might be the solution you need. A payday loan, or cash advance, offers you a short-term loan that will need to be repaid the next time you receive your paycheck.
If you have bad credit, you will not be able to be approved for traditional loans. With a cash advance, the lender will not perform a credit check, and the approval process is minimal. Payday loans normally range from $100 to $1500, and the money could be deposited into your bank account before the day is complete.
In order to qualify for a payday loan, you must be a citizen of the United States. You also must be at least 18 years of age and have a steady source of income. A valid checking or savings account is required, so the money can be directly deposited into your account.
When you receive your next paycheck, you must repay the loan. In some cases, the lender will just automatically withdraw the money from your checking account. Some lenders will require that you write them a check, and they will cash the check on the due date.
You can apply for payday loans online, or you can apply at a local store. The application process is simple, and you can be approved for a loan in just seconds. After you are approved, you will receive the terms and conditions of your loan. It is important to read the agreement of the loan carefully, so you will know what to expect.
One of the disadvantages of payday loans is that they are expensive. The interest rates are much higher than regular loans, and they charge numerous fees. Before agreeing to a payday loan, make sure you shop around and compare rates. You want to make sure you are getting the best possible rate for your loan.
You should not apply for a payday loan unless you can pay it back on time. If you are not going to be able to repay the loan on time, you can ask for an extension. However, you will be required to pay additional fees, so you could end up further in debt.
Because payday loans are costly and can get you into serious financial troubles, you need to explore all options before applying for a loan. Here are a few alternatives to payday loans that might be beneficial:
- Speak to your bank: If you are a loyal customer, your bank might be willing to offer you a short-term loan. Your financial institution might give you a small loan at a better rate.
- Credit card cash advance: A credit card cash advance will be cheaper than a payday loan. Even with bad credit, you might be able to be approved for a secured credit card, so you could take out a cash advance.
- Credit counseling: You could contact a credit counselor to create a budget that is affordable for you. A credit counselor can also help you negotiate with your creditors to come up with a repayment plan.
- Contact your creditors: If you explain the situation to your creditors, they might be willing to grant you more time to pay your bills.
- Get a second job: If you get a part-time job, you could have more income to pay your bills and any other expenses.
Payday loans can offer you some temporary financial relief; however, they are not for everyone. Before applying for a cash advance, make sure you explore other options. You also need to know the payday loan laws in your state. In some states, payday loans are prohibited, so you need to make sure they are legal before you consider a loan. Most states have laws limiting the amount that you can borrow, and some states have limits on the amount of fees that you can be charged.
If you are in desperate need for money and have bad credit, search online to research your choices. If a payday loan is the best solution for you, apply for a loan, and you will have the money in your bank account quickly. You can then get the financial help that you need to get you back on your feet again.
Many U.S. States have Statutes that puts a limit on how much a payday lender can lend to the borrower and the length of the term of the loan. Other States prohibit payday lending altogether. See ncsl.org/issues-research/banking/payday-lending-state-statutes.aspx
Please check with the Attorney General in your State for the most up to date laws on Payday lending. Find out about Not Paying Back A Payday Loan