Cash advance loans have many names. I have heard them called “cash advance loans” obviously, “payday loans”, “quick cash loans”, “faxless loans”, and “wire transfer loans.” I am sure there are more names for them, but you get the point.
Loans like this have become ever popular as they are quick and easy and it fills a need that banks cannot provide. When used appropriately, payday loans can be such a valuable resource!
The key phrase is “when used appropriately.” Let us see first, how one would obtain a payday loan.
If you are not familiar with these loans at all, then read on. A person needs money for whatever reason; it might be to fix her car, pay for medical expenses or a bill that is due before payday. Payday loans are great when there are urgent things that come up, but they also can be great when you know you have money coming but are too impatient to wait, or you don’t want to pass up an opportunity while you wait for it.
So then this person finds a lender after some research and deliberation. Do you need to do research before getting a payday loan? No.
If you don’t want this loan to come back and bite you, it is a good idea to practice a bit of research. You may want to look into what the laws are for your state regarding payday loans so you know that you aren’t being charged too much for it, or that it isn’t exceeding the maximum guidelines set for loan amounts.
The lender is chosen, hooray! Our borrower then applies with said lender and starts the application process. First our gal opens the door to her lender (or picks up the phone, or fills in the application online) and tells them how much she wants. They go over the cost of obtaining such a loan and then she fills out the actual application. It is good to talk to your lender and ask what they are offering right now.
If you make it look like you are just shopping, you may get a better rate. And if you remain a loyal customer, some lenders reward with good rates on future loans. The application simply needs our applicants name and personal identification information. The lender will ask to see proof of employment and proof of bank account.
Every lender is different but most as for proof of employment for at least three months. You must be a citizen of the United States and be 18 years of age or older to apply. You and your lender will decide how long your term is. Most terms, and the smartest ones, are only a couple of weeks. Because after all, what is this loan? A payday loan. Pay it off by your next paycheck or find yourself paying a lot more in fees and compounding interest.
Next you go over your contract, which you should have read and noted the fees for late payments, extension of loan policies and your interest rate that was discussed with your lender. Make sure you play close attention to those details because it is the small things that come back to haunt you if you are unprepared for them. Once this is done, sign your contract.
The next to last thing a person would do is to authorized a bank draft, or hand over a post-dated check, for the lender to debit your account to repay your loan. The very last thing is to simply enjoy the money when it comes in!
Remember, just as with any loan, these are taken very seriously and you are still obligated to pay it back plus any fees and interest. The best way to ensure that you can pay off your loan is to have a plan of how you are going to pay it off, before you even apply.