Approximately 12 million Americans take out payday loans annually for short-term financial help.
Your financial situation may be tight and you may need a short-term loan. In the middle of the month, you may be anxious about an upcoming rent payment or keeping your cable services activated. In some instances, a visit to the doctor’s office could require you to take a loan.
There are numerous options for quick fix loans however, you need to be very careful of the requirements and payment plans of these loans.
Are you in a pressing financial emergency? One of your options is a payday loan.
Read on for a complete guide on how to get a payday loan.
What Exactly Is a Payday Loan?
A payday loan is also called a cash advance loan and is an alternative form of credit that can be quickly accessed. Whether you have bad credit or on a low income, you can qualify for a payday loan.
Payday loans have a very high annual percentage rate (APR) unlike other personal loans because they are available to people who may not be eligible for traditional loans.
To get a payday loan you need to do the following.
1. Research the Lender on How to Get a Payday Loan
Lenders must abide by state and federal laws. They are required to disclose charges and any corresponding APR in writing. This way you will know the terms before committing to a particular lender. You can visit the lender store or apply on phone or online. There are scammers in this industry so do due diligence before applying is key.
2. Provide Proof of Income
Lenders require proof of your ability to pay their loan. They will ask for a recent pay stump or bank account statements showing how much you have been paid in the recent past. You need to provide proof of being paid on a regular basis.
3. Have Identification Documents
You need Legal documents indicating that you are above 18 years and a resident of the state in which you are applying for the loan.
4. Bank Account Details
Payday lenders look at your bank account before approving a loan. Ensure that it is not overdrawn as the lenders need assurance you can pay back the loan. In some instances, lenders ask for your bank account routing number where they withdraw directly from your account after agreeing on applicable fees.
5. Check Your Credit Score
Some lenders will determine the loan approval based on your credit history which is an indication of your ability to repay back their loan. Some even look at your debt to credit ratio. Did you know that for payday loans no credit check is required? Nonetheless, it’s important to ensure you repay on time.
Get Your Loan Approved
Knowing how to get a payday loan is one way to help solve your financial crisis. There are emergency situations that may make you opt to get the payday loan payable in two weeks or until your next paycheck.
Payday lenders have outrageously high interests which if not paid in time could cause financial constraints on the borrower. Have the right documents and your loan will be approved immediately.