How to Find a Good Payday Lender
When you discover youâ€™re in a financial bind and need some extra cash to cover an immediate bill or emergency, some people turn to a payday loan or cash advance to cover the cost. This loan are meant to provide a quick temporary fix to your immediate needs and eliminates the hassle of applying for a long term bank loan where the process can be lengthy with higher interest rates. In most cases you can find a good payday lender with relatively inexpensive fees, however youâ€™re required to pay a conveniences fee or small percentage of the amount owed.
How does a payday loan work?
The process to apply for a payday loan is simple as well as the approval process. Qualification are simple and most time verifiable such as employment and bank account requirements. Because the process is quick it only takes a few phone calls and documentation to apply. Because a payday loan has a restricted amount of money you can borrow at one time the repayment is quite easy; usually within a few weeks or upon your following payday.
Since the borrowing amount is considerably lower than a bank loan the affect on your credit report is negligible. While there are various types of payday loans some secured and other unsecured, typically most payday loans are unsecured because of the amount of the loan.
How do you qualify for a payday loan?
Qualifying for a payday loan is an easy process. Most payday lenders require verification of an income source such as employment, bank statements as verification of an active checking account and valid state issued identification. Your credit rating has no basis for approval therefore it is ideal for any type of credit rating.
Once youâ€™re approved you simply write out a post dated a check for the amount of the loan plus any interest or convenience fees made out to the payday lender in exchange for cash. Once the payday loan is established you can either allow the check to post to your bank account or walk the cash back into the payday lender and get your post-dated check back. Thatâ€™s it, easy as 1-2-3.
How do I find a Payday Lender?
There are three basic ways to find a payday lender, either though the newspaper or at your local check cashing establishment or online. Youâ€™ll have to do some research in your local area for payday lenders as well as online.
Itâ€™s always best to do comparisons between the local lenders and online lenders to find the better deals and lower rates. There is specific information you want to focus on such as, fees, penalties for late payments and if they have an extension plan, if you need more time to pay your loan back.
If you elect an online payday lender youâ€™ll want to take extra precaution with your selection. You should make sure the lender has the legal ability to offer such services and not an internet scam.
Make sure that the Payday lender is within your country and if not check for regulations and legal implications by using a foreign lender. Finally if the payday lender in your region you can refer to the BBB or Better Business Bureau to check on their business practices.Â