When you are in a tight spot financially and need money fast, a payday loan can be a big help. But you should be very careful about getting any kind of payday loan because the fees you will have to pay can get very high. A payday loan is meant to help you out when you need money quickly and right away. Many people use payday loans to pay for unexpected car repairs, bounced checks, emergency trips, or even rent. Most of the time, people who use a payday loan company are having a hard time in life and are in financial trouble.
The bad thing about payday loans is that they can be a pain in the rear, even though they are meant for short-term loans and emergencies. If you need cash fast for any reason, they can "help," but they will charge you an arm and a leg for it. Payday loan companies can charge very high fees, and if you don't pay it back right away, you risk having more money added to it. To get a payday loan, you fill out an application and tell the company you need money. You will need to show proof of a checking account (like a statement), proof of income, proof of your address, and a photo ID.
With a payday loan, there are no credit checks. You just have to give information about yourself, your bank account, and the company you work for. Then, you will write them a check with a post-dated date for your next payday. The check will be for the amount they loaned you plus fees and interest. When your next paycheck comes, you can do one of three things. You can choose to let them deposit your check into your checking account to pay off the loan, pay off the loan in person and get your post-dated check back, or roll over the loan by paying the interest and fees.
It's important to look into all of your options, and it's a good idea to use a payday loan service only as a last resort. If you're not careful, this could end up causing you more problems than it solves.
