For people who are in need of fast cash, payday loans can be obtained. There are many reasons why people may require a payday loan, such as for an emergency, to pay off bills or to have extra money for a special event. In order to get a payday loan, you’ll need to find direct payday lenders that can offer you a loan until you get paid. There are payday loan lenders that you can find throughout the country, so there’s likely one that is near the city you live in.
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What are Direct Payday Lenders?
Direct payday lenders aren’t banks or credit unions. These are independent companies that offer payday loans to consumers who are employed or have verifiable regular income (social security, disability, etc.). These are spread out across the nation and have many different franchises, so if one has high fees or strict requirements that you don’t meet, you may be able to find another that fits your needs.
How to find Direct Payday Loan Lenders
You can use various methods to find direct payday lenders, such as with a phonebook or the Internet. Search engines like Google and Yahoo can be used to search for payday loans in your city. Some payday loan lenders have Web sites where you can check out the services that they offer. Some have other financial services, such as check cashing and prepaid cards. The Internet is a great source for finding out about a direct payday loan lender as well, such as whether the company is licensed by the state to offer such services. You want to only do business with a business that has a license to practice lending. Reviews can also be found on the Web, which will give you insight from actual customers who have used their payday loan services.
Getting a Payday Loan
Once you have narrowed down your search to one or two direct payday lenders, you will need to find out what information you need to bring with you to get pre-qualified for a loan. In most cases, it is required that you bring in two forms of identification, a bank statement, a blank check and paystubs that showcase one of two months of wages. An application will have to be filled out containing your name, social security number, employer, addresses and phone numbers. After your application is approved, you will be given a maximum limit that you’re able to receive, based on how much you’re paid each pay period. You can choose to take out the max or a lesser amount.
How Payday Loans Work
You will have to write a post-dated check and give it to the direct payday loan lender to hold. Payday loans are required to be repaid by your next pay period, which is usually weekly, bi-weekly or monthly. Once your payday arrives, the lender will either cash the check on that date or you can come there to pay for the loan and pick up your post-dated check. There is interest for payday loans, which is usually between $10 and $20 per $100 that you borrow.
Why People Use Direct Payday Lenders
It’s hard to predict when an emergency will strike and sometimes, we’re not prepared to pay for it. If your next paycheck isn’t until two weeks and you need cash right there and then, you can opt for a payday loan. If you shop around online, you may be able to find a payday lender that will direct deposit the funds to your bank account. In this type of arrangement, the repayment will automatically be taken from your bank account on your payday. If you get direct deposit from your employer, this could be good for you. Otherwise, make sure to have the funds in your account, so that you don’t face an overdraft fee or fee for insufficient funds. To get a payday loan direct deposited into your account, you’re going to have to fax details to the lender, such as your pay stubs, ID and account information.
Payday Loan Tips to Keep in Mind
Payday loans seem like a great arrangement for most people, but for others, it can be a debt trap. These loans should only be used sparingly and not as a cushion for your every paycheck. It’s easy to fall into the pattern of getting payday loans and if you’re not careful, you could end up depending on them for the long-term. You should only get a payday loan that you can pay off and that won’t offset you to where you have to rely on them frequently.