You might find yourself a little short of cash and Christmas is just a few days away. Or, you might find a fantastic deal on a television that you have wanted to buy but you are running short on cash. There are many possibilities including the fact that you need some cash to help you through a difficult period. There is a solution. It is called the Payday Loan.
A payday loan, depending on which state you live in, generally are available for up to $500. They are an unsecured loan and they are offered on a short-term basis. The loan is linked to the next day you will be paid at work. So, what you are doing is getting an advance payment on your next paycheck.
You will need to find a payday store. You will be asked to complete an application depending on which payday loan store you go to. You will also need to provide pay stubs from your employer. These stubs must show your present income level. Often these stores base their loan on the percentage of your predicted immediate income.
Depending on the store you go to your loan may also depend on your credit score as well as your credit history. This information is obtained from a “hard credit pull.” Once you are approved for and receive your loan you will be told the amount of interest you must pay. It is important you know this amount as it can sometimes be very high. Each state has regulations on these loans while some states outlaw payday loans of any kind.
Often, these loans can be rolled over. However, doing so will incur additional finance charges. This can sometimes result in you becoming a repeat borrower. This can sometimes put you in an endless cycle that is difficult to break. Instead of becoming a roll-over repeat customer it is best, if possible, to repay your loan on the scheduled due date.
If you are wondering if people get payday loans the answer is, yes. More than 12 million Americans use payday lenders each year. Customers are loaned more than $7 billion. The average borrower receives $375 eight times per year. There are more than 20,000 different outlets where you can obtain Payday Loans.
If you have a job it is generally fairly easy to get one of these loans. You go to a payday-advance store, or, some states allow you to get an advance online. You will need to prove to the representative that you have a paycheck coming within the near future. You then sign a loan agreement. The next step is to write a check for the amount of the loan and include the fee you must pay for the loan. You then receive the amount of the loan you request. The store holds your check until the agreed-upon date (which is almost always your next payday). Some stores may have additional requirements. Each store has its own rules and regulations.
There is some controversy regarding the sensibility of getting this type of a loan. However, when you are facing a financial crisis this can be a safe, quick response to your needs.