A lot of people and families live from one paycheck to the next. Because of this, a lot of payday lenders offer people who are short on cash a way to borrow against the guarantee of their next paycheck. Many people run out of money, lose their utilities, or miss their car payments because of problems that come up out of the blue. Payday loans are a good option for people who need money right away but don't have any other way to get it.
Here are 10 tips for using and getting payday loans. Before starting the loan process, you should carefully think about the company and its reputation.
If you can, pay off the loan in full when you get paid again. This is better than refinancing payday loans, which will cost you more money in fees and interest.
Don't use a payday loan to go on vacation or buy jewellery or expensive clothes that you don't need. Instead, payday loans should only be used for things you need, like going to the doctor or getting medicine, buying groceries, paying bills, gas, fixing your car, etc.
Before you agree to a payday loan, make sure you've read and understood the whole contract. Before you sign, you should always read the small print and ask questions about anything you don't understand.
$Before you deal with a payday loan company, check with the Better Business Bureau to see what kind of reputation they have.
$If you want to apply for a payday loan, make sure you have copies of your most recent paycheck stubs and the contact information for your current employer.
Self-employed people don't usually get payday loans because their income is hard to predict. A person who works for themselves might want to get a secured personal loan instead of a payday loan.
If you've refinanced your payday loans more than once and they're getting out of hand, you might want to apply for a credit card with 0% APR for 6–12 months or a low introductory interest rate. When you get the card and it's been approved, use the credit to pay off your payday loan so it doesn't keep rolling over and getting more expensive.
You might be able to get a payday loan even if you have bad credit. The reason is that a credit check is rarely done. Instead, a person's current job and salary are a more important way to check if they can pay back the loan.
When you apply for a payday loan, you may be asked to write a check for the amount of the loan plus fees and interest. This check will be cashed when you get your next paycheck, unless you refinance the loan.
Payday loans are meant to be paid back when you get your next paycheck, so you must be able to show proof from your current employer that you get paid on a regular schedule.
