Some people live from paycheck to paycheck and may not have enough money in savings to pay for an unexpected expense. Some people may need cash fast for a family emergency, an unplanned car repair, or a medical bill. No matter what the reason is, a payday loan is a quick way to get a short-term loan or cash advance.
If you need a payday loan, it would be smart to look at each payday lender before choosing which one to work with. There are a lot of places to get a payday loan, and each one has different rates and terms for paying it back.
Most payday loans are small cash advances ranging from $100 to about $1,000. If it's your first time borrowing from a payday lender, they usually have a limit on how much you can borrow. This limit is based on how much money you make and how often you get paid (weekly, biweekly, or monthly). After you pay off your first payday loan advance, most payday lenders will let you borrow more money as long as your income and job haven't changed. Most payday lenders want you to have worked at your job for at least three months, but the length of time varies from lender to lender.
Before choosing a payday lender, it would be a good idea to look at each one's rate, since they can be very different. When you apply for a payday loan online, make sure to read the language carefully because it may not be clear. When looking at a payday lender's website, make sure to look for the phrase "$11 per $100 borrowed per week" instead of "$25 per $100 borrowed." Whether you choose the payday lender with the best rate or not will depend on how you plan to pay back the loan.
Most payday lenders want you to pay them back in cash when you get your next paycheck. If you got paid once a week, the best rate you could get from a payday lender would be $11 per $100 borrowed per week. But if you get paid once a month, a better rate would be $25 per $100 borrowed, as long as the $25 is a fixed fee until your next payday. Take a moment to call the payday lender if you have any questions or if the terms aren't clear. They can help you understand the loan.
When you get a payday loan, you should only borrow the least amount you need. Since a payday lender wants you to pay them back in full when you get your next paycheck, you should make sure you have enough money left over from your next paycheck to pay your bills. If you don't have enough money to pay your bills, you may have to ask for more time or make a minimum payment if the amount of your loan is about the same as your whole paycheck.
When you ask for an extension or make a minimum payment, the lender will usually charge you extra fees. If you don't pay off your loan quickly, these fees will add up and cause you more trouble with your money.
