If you experienced a $1,000 emergency, do you have a way to pay for it? According to one study, around 41% of Americans stated they do not have enough cash on hand to pay for an emergency of this size.
When you encounter emergencies, such as unexpected car repair bills, where do you turn for help? One option you can choose is a payday loan.
If you’ve never taken a payday loan, you might wonder what it is and how to get one. If you have these questions, you’re in the right place. Here is a guide that will help you learn what a payday loan is and how to get one.
The first thing to know about payday loans is that they are short-term loans. When you borrow money through a payday loan, you will not have years to repay it. Instead, you might have a couple of weeks to repay the money you borrowed.
Payday loans are one type of short-term loan, but you can also get other types. For example, some people turn to auto title loans or personal loans instead. All three types fall into the short-term loan category.
When you get a payday loan, you should also expect to pay a high-interest rate and fees. Any loan you pursue will require paying interest and fees, but payday loans generally have higher interest rates than other options.
One of the benefits of payday loans is the criteria needed to qualify for one. The requirements are different for payday loans than for most other loan types.
The first thing you’ll need to qualify for a payday loan is a driver’s license. The lender will need to know who you are before offering you a loan.
Second, you will need proof of your address. The lender needs to know where you live before issuing the loan, just in case you default on it.
Third, you might need proof of income. If you borrow money, you must repay it. To repay the money, you might need to prove that you have a job.
Finally, you might need a bank account. Lenders use this to deposit the proceeds. They might also use it for your repayment of the debt.
One thing you will not need to qualify for payday lending is good credit. Lenders do not base their decisions on a person’s credit. In fact, payday lenders do not even check a person’s credit score when evaluating their application.
If you desperately need some money and decide to get a payday loan, you might want to find out how they work before applying. The process is relatively simple and straightforward.
It begins by filling out an application. The application asks for basic information about who you are, your job, and your location. Next, the lender reviews the information.
After reviewing the information, the lender decides to approve or deny the loan. If the lender approves your loan, they might require your bank routing number.
Most payday lenders deposit the proceeds directly into the borrower’s account. They will also require authorization from you to take the payment from your account on the due date.
Before you get a payday loan, you might want to find out a few things. First, you might want to ask about the loan amount. Most payday lenders issue loans up to $500, and the amount you qualify for might be dependent upon your income.
Next, you might want to ask about the interest rate and fees. It’s always a good idea to find out how much the loan will cost before taking it.
You might also want to ask about the due date and amount. Knowing these things will help you plan for repaying the debt.
You should also ask about the options for repaying the money. If the money comes directly out of your account, you must make sure that you have enough cash in your account to cover it. If you don’t, you might incur extra fees.
Taking a payday loan is a great way to get by during a financial crisis, but you might want to prepare for these types of emergencies in the future. The best way to do this is by creating an emergency fund.
An emergency fund is a bank account that you create for the purpose of emergency expenses. You can put as much money in the account as you wish, but you should aim to have at least $1,000 or $2,000 in it.
If you have an emergency fund, you can use the money from it to pay for unexpected expenses. By having this money available, you might not need to apply for payday loans or other short-term lines of credit.
Payday loans are ideal for so many reasons, but the main benefit is the speed.
After applying, you might receive the proceeds within an hour or two. There are few loan types that offer fast disbursement of funds like these loans.
The second benefit is the ability for anyone to qualify for one. You don’t need perfect credit for a payday loan, which makes these ideal loans for almost anyone.
Finally, the application process is simple. You won’t need to supply the lender with your entire financial situation. You only need a few things to apply.
As you can see, getting a payday loan offers many benefits. If you’re interested in applying, talk to a lender.
Most people experience times in life when they have unexpected expenses. If you aren’t prepared for these emergencies, you might not have enough cash to cover them. That’s okay, though, because you can turn to a payday loan.
Are you ready to apply for a payday loan? If so, contact us at Rapid Cash by calling or filling out this application.