Have you ever had an unexpected cost, or several unexpected costs all at once, come up between paychecks and you didn't have enough money to cover them? An unexpected cost could be a medical bill, a car repair or other major repair, or a last-minute trip to a funeral overseas or across the country. Maybe you wrote a check months ago and forgot about it. It's about to be taken out of your account, but you don't have enough money to cover it. You might have a full-time job that pays well, but you haven't been able to save much money for emergencies. These things can happen to almost anyone, and getting a payday loan is a good and easy option.
But not everyone can get a payday loan. First of all, payday loan lenders won't look at your application if you don't have a current job, even if you have a history of work that can be verified. This is because you have to show that you can pay back the loan on your next pay day with a job you already have, not one you might get in the future. Second, you need a bank account to get a payday loan. This is so the loan company can deposit the money you borrow and take out the same amount plus the fee on your next pay day, using a check you've written. Some payday loan companies may also ask for extra collateral, like the title and registration to your car.
Most people who have a job and a checking account can apply for a loan, but there are a few people who can't. For example, even though the application process is quick and easy and does not require a credit check, some people may not be able to get a payday loan if they are considered to be a "risky borrower," or someone who has a history of bouncing checks, based on what companies like ChexSystems or TeleCheck Recovery Services find when they run their databases. If a programme like this shows that you have bounced too many checks, the lender may decide that you are too much of a risk and refuse to give you a payday loan.
Even so, most people who apply for a payday loan in person at a payday loan or cash advance store, over the phone, or online get approved and are able to deal with the unexpected expense or expenses in a quick, easy, and mostly hassle-free way. If you can pay back the loan right away, usually on your next pay day, the fee you pay for the fast, easy payment to help you out of a financial emergency can be worth every penny and then some.
