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Payday Loan – A Strong Financial Assistance That Doesn’t Come CheapEven if you have a huge load of money, it is a fact that critical cash emergencies have a way of getting in to wreak havoc on your finances. Since you have a lot of cash to spare, you can probably eliminate the problem in a short time. But what about the average wage earners who can barely stretch their budget until next payday – will they be as fortunate?
A paycheck or payday loan is a fast, easy to access source of funds to cover sudden expenditures between paydays. It is a small short term loan that carries high interest because of its unsecured nature. Since paycheck loans charge hefty penalties for late payment, you should only take out what you can afford to pay.
A bad credit score won’t affect your ability to apply for a fast loan. However, you do need to show proof that you are fully-employed or have a steady source of income. This information will help the lender decide as to how much you are qualified to borrow. Have the documents ready on sign up, including your most recent paycheck stub.
There are many acceptable sources of income when signing up for a payday loan. Even self-employed individuals are allowed by some lenders to qualify. Social Security and disability checks are accepted as long as it is in the borrower’s name.
Having an active bank account of good standing is a requirement when you apply for a paycheck loan. Once the borrower is approved for the loan applied for, the funds will be transferred by the lender directly into their bank accounts.
When the loan becomes due, funds for repayment will be automatically withdrawn by the lender from the borrower’s bank account. Just like any loan, repaying the loan in full includes its interest rate and other fees. The interest depends on the amount taken out, not according to the borrower’s credit. The more money you borrow, the higher interest rate you will incur.
It is a must that you pay on time. If the funds are not yet ready when the lender tries to withdraw, then the borrower will be charged a late fee. If you require an extension, which is usually a week, you will have to pay additional interest. Every extension you request will require more fees.
These payday loan fees, along with the principal, can turn into a huge debt if not properly managed. So be sure to payback your loan long before it becomes unmanageable. GP