If you find yourself in a situation where the money you have is not enough to take care of your bills, you should not panic as there is always a way out. The answer to your problems could be a quick loan. Payday loans have proven to be very useful in situations that require speed and reliability. They are especially attractive to borrowers who need to deal with unexpected expenses like health problems or car malfunctions. Having said that, they can also be quite risky so you have to be sure you can repay the loan on time or you risk facing even more financial issues and fall into a debt cycle. Before you submit your quick payday loan application, it is good to consider other borrowing alternatives such as asking your friends and family for a small loan.
Do online research
If you have decided to take out a quick payday loan, you can easily find many loan lending companies online. These lenders usually give small, short-term loans to people who are in desperate need for a fast cash flow. Normally, these loans have high interest rates and strict repayment terms, which may sometimes lead to additional fees and costs. Consider this type of loan only if you are completely certain that you can make the repayments on time. If that is the case, quick payday loans are a great choice and have lots of benefits to offer.
- A few key points to keep in mind
- Payday loans are extremely fast and easy to get but that comes at the price of higher interest rate.
- Use the internet to find an honest and reliable lending company.
- Don’t forget to consider borrowing alternatives such as asking a family member or a friend for a small loan, taking an advance payment from your employer or getting an authorized overdraft from your bank.
Calculate all quick loan costs
Once you have found a payday loan lending company to work with, compare all the conditions and terms with what other similar companies have to offer before submitting your application. You should check and compare all charges. Such charges may include the initial fee you have to pay when taking out the money, interest rate or any other admin fee that may be featured in your quick loan contract.
- Most payday loan lenders have online calculators on their websites which let you calculate the amount you will end up paying after taking out a loan. Make sure you read all the fine print and look for any hidden charges and fees.
- Keep in mind that the average annual percentage rate for a two-week payday loan is usually around 400%, and can go even higher.
- The average annual percentage rate for a credit card is somewhere around 12% and that of a standard loan is around 7%. However, both options do not offer what quick payday loans bring to the table.
Make sure you can repay the quick payday loan on time
When you take out a quick loan, there is always the risk of dramatic increases in the loan cost in case of a late payment. By nature, quick payday loans are short-term loans for a small amount of money which should be repaid by your next payday. If you fail to repay on time, sometimes you have the option to rollover your loan, but that will bring more charges. So If you have the slightest doubt that you will not be able to make your repayment on time, you may want to consider other options.
- The payday loan costs can escalate extremely fast, so it is for the best that you have a clear plan on how you are going to make your repayments before you take out a quick loan.
- If you are close to your quick loan payment due date, but you still don’t have enough money to cover it, you should resist the urge to get another loan to repay your current one.
Submitting your quick payday loan request form
Once you have chosen a lending company and have considered your repayment abilities, it is time to apply for your quick loan. Here is what you need to know about a payday loan application process:
Even though payday loans are very fast and simple to get, you still need to meet certain eligibility criteria in order to get your loan. Such requirements include proof of your identity, proof of a steady source of income, proof that you are a permanent resident of the state where you are applying from.
You can apply for your quick payday loan by visiting a lender’s on-ground store or submitting the application online. Most payday loan lending companies require you to have a valid checking account as that makes the money transferring less complicated. There are, however, some lenders who are willing to grant you a loan even if you only have a savings account.
- Signing the agreement
If you apply for your loan online, the procedure of singing will also be done online. Every state has its own payday loan laws legislation, but in all of them, the lending company is obligated to disclose all terms and conditions of the loan before the borrower signs the agreement. It is of great importance that you carefully read the contract before you put your signature on it. Pay attention to even the smallest details, especially those concerning any possible finance charges and interest rates.
- Get your cash
After you have signed the loan contract, the money will be automatically transferred to your account. The whole process will take no more than a few hours. For an online application, it may take up to one business day for your money to arrive in your account.