Steps for taking out a payday loan
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When you encounter an emergency financial requirement, obtaining a payday loan would be the best option available. With these loans, it is possible for you to borrow somewhere in between $100 - $1000 with a slightly higher rate of interest. Usually, you will need to pay back the loan you obtain on the following pay day. Here is a list of all the steps that you need to follow in order to obtain a payday loan.
Looking for a lender
The first step of obtaining a payday loan would be the look for a lender. It is possible for you to locate a loan lender in your area through internet with minimum hassle. When it comes to obtaining a payday loan, you can follow two different approaches. Either you can visit a payday store in person and obtain the loan or else you can simply apply for it through the internet. Even though obtaining a loan online is quick and easy, you should be careful about it because there is a higher chance of getting scammed. Therefore, you need to take a look at the reputation of your lender before you go for an online payday loan.
If you are not ready to take the risk, you should look for a cash advance loan office that is located in your local area. You should analyze the company in here as well, in order not to get ripped off. It would be a good idea to go for a company that is attached to a large institution and does not offer extremely high interest rates. The company you select should offer upfront details about loan requirements as well.
Collect all the information required
When you select a reputed company that offers cash loans, you should inquire about the requirements and start preparing. Different lenders have different requirements, but you will not have to go through a difficult process when preparing the required information. The most convenient method available for you to be aware of requirements would be to call the company or take a look at its website.
In order to obtain the cash advance loan, you would need to have the below mentioned requirements.
- Proof to show your steady income.
- Proof of your bank account.
- Contact information of you as well as your employer.
- Your ID card to show that you are over 18 years of age.
- Prove that you are not in a state of bankruptcy.
These are the basic requirements and they could vary based on the lender you select. In addition to the above mentioned documents, it would be a good idea to take a blank check along with you. Then you will be able to prove your lender that you are going to pay back the payday loan obtained.
Applying for the loan
When you walk into the office of the lender to apply for your payday loan, you should take some time in order to discuss about the company policies. This will help you to get all the doubts that you have in your mind clarified. In this stage, you need to make sure that you are not going to pay any hidden fees. You should also inquire what would happen if you fail to pay back the obtained loan on time. You need to agree upon the repayment date as well.
Once you get all the doubts clarified, you can simply fill out the application to obtain the payday loan. The details that you should provide in the application depend on the state you live and the lending company you select. In general, you will need to provide contact details, information about your employer and some other personal details.
You should also inquire about the fee that you will have to pay in order to get the payday loan. Once your application is approved, you will need to pay this fee before taking the loan to your hand. The cost associated with the fee would depend based on the policies of your company. In addition, if you take a higher amount as your payday loan, you will have to pay a higher fee.
When you pay the fee and get the loan to your hand, you should leave the check with your lender. In the check, you should clearly specify the amount that you need to pay back to the lender including the charges. The lender might ask you to complete a memo line as well. You should provide it to the lender after obtaining the loan.
The approved payday loan can either be deposited directly to your bank account or you can get the cash in your hand. This also depends on the amount of money that you have obtained. Usually, most of the lenders would provide cash to your hand if the loan amount is less than $1,000.
Repayment of your loan
After obtaining the payday loan, you need to be concerned about repayment of it as well. You will need to pay and settle the cash advance loan by the next payday. You don't need to go to the office of the lender in order to pay back the obtained loan. The company will be able to cash in the check that you have provided to them. However, you will need to make sure that you have enough funds in the bank account to complete the transaction.
If you fail to find the repayment amount by the due date, you should never get frustrated because the lenders would offer flexible repayment options to you. In fact, you will be provided with 14 additional days to make the repayment. In case if you feel like you are not in a position to repay the obtained loan, you need to think about renewing it. In other words, you will be able to renew the obtained payday loan up to the next pay day. In addition, you should see whether it is possible for you to pay the amount back a little early.