We’ve all been in those situations where we need money and we need money now.
Where can you turn when you feel like you have no options left?
Payday loans are a great way to get some extra money faster than you may otherwise, but it is important to understand what they are before you go that route.
So… what do you need to get a payday loan? Glad you asked!
If you’d like to learn about how to get a payday loan and what you need to be aware of when doing so, keep reading to see what you can find out.
What Is a Payday Loan?
You may have heard the term cash advance. This is the same thing as a payday loan.
A payday loan is a short-term loan with a low balance and a high interest. They are typically cashed from checks that are on the borrower’s upcoming payday, so it is money that you would have gotten anyway and are just getting earlier.
Under most contracts and agreements, you will be required to pay back the amount you borrowed, plus the interest, on your next payday. This means making a strict budget, which can be hard for people that are already on a strict budget.
Make sure that the payday loan is the right choice for you before deciding to take it out. Once it is done, you can’t go back and change your mind!
This type of loan can be helpful for many people, but it also can be difficult to repay in some situations, as is true with personal loans and every other type.
Typically, a payday loan is easy to get for many people. There are not a lot of qualification requirements, and they are usually fast and simple for people that are really strapped for cash.
What Do You Need to Get a Payday Loan?
As with many loans, you have to have a steady source of income of some kind to qualify for a payday loan. You don’t have to be employed, but you have to have an income. You will have to provide proof of income at some point when applying in person.
You also have to have a residence and be at least 18 years old. These are also typical things of any type of loan you would apply for, regardless of who the loan is through.
You are not able to get a payday loan if you are in the military. There are other resources for that type of situation due to the Military Lending Act, which was enacted in 2016.
In order to be approved, you must have a valid Individual Taxpayer Identification Number or a Social Security Number.
If you plan to apply online, you need a checking or a savings account that has been opened for at least one month in most states. Check your state for specific requirements about this. If applying in person, make sure to bring a government-issued photo ID.
As you can see, there are a lot of little things that you need to be aware of when applying for a payday loan, but most of the requirements are things that people can handle. This is why these types of loans are so popular and widely used by people that need money fast.
Things to Know Before Getting a Payday Loan
The lender will usually determine how much cash you actually get. This amount typically is somewhere between $100 and $5,000.
If you miss the due date to repay the loan, you are going to suffer for it. Typically, the fees are going to be pretty high for missing the repayment date, so don’t miss it!
Since many people that use these types of loans are generally strapped for cash, it can be difficult to pay back the amount due when the time comes. This is why you need to plan ahead of time and make sure that the payday loan is what makes the most fiscal sense for you.
If you are someone who doesn’t have good credit, you can still apply for, and likely get, a payday loan. Many loans require a high credit score, but a payday loan is different in that it is meant to be more accessible due to the high interest rates.
When you apply in person, it typically takes about 30 minutes of your time to complete and turn in the application. If you are planning to apply online, the time is likely going to be a little shorter.
Getting a Payday Loan
What do you need to get a payday loan? Now you know!
You may be interested in getting one before your next paycheck. Luckily, there are a lot of lenders out there and opportunities for this to happen!
Be sure to ask questions and make sure that you understand the loan before you agree to it. Interest rates may be high, but they should not be higher than competitors.
Payday loans were designed to meet a pretty immediate need, so it is understandable that people applying for them likely have their own unique circumstances to consider.
Work with professionals that genuinely care and want to help you with your financial situation. This will help you understand the process better and get things back on track for future paydays.
Take a moment to check out our webpage about payday loans and see what we can do to help. There are a lot of options to explore and we understand that everyone’s situation may be a little different. While some may need a payday loan, others may need a bad credit loan, and still others may need a cash loan.
Here are some other articles you may enjoy:
Why Do I Owe Taxes? A Guide to Paying Back Taxes
When, Where, Why, and How to Refinance Your Personal Loan
4 Easy Credit Cards to Get for People with Bad Credit
An Expert Guide to Low Interest Credit Cards in 2019