When you make a payday loan or short-term cash loan, you will agree with your lender upon a set date to make payments. This is usually based on your actual payday from your job or other source of income. If you get paid on Fridays, your payday loan payment will likely be due each Friday for about a month or so. If you get paid once a month, you might agree to pay back the entire loan amount in one lump sum.
If you're unfamiliar with payday loans, these are quick cash loans that are granted on a short-term loan basis. The amount of the loan may be any small amount from $100 to $1,000, but must be paid back with a fee based on the amount borrowed. Payday loans have become a popular way to obtain fast cash in recent years for emergency financial needs, especially for those who have poor credit or already struggle with living on their weekly pay check. Perhaps you need cash to pay a utility bill before the shut-off date. Or, maybe you need to take your child to an emergency dentist visit. If you need cash because you've had to put your car in the shop or to simply buy some groceries to get by for the week...payday loans can provide a convenient solution.
Keep in mind that payday loans aren't meant to solve long term financial issues. They are different from personal loans; therefore, you won't be subjected to the usual credit scrutiny of a bank. You must, however, ask yourself if the payday loan is really necessary, or if the money could possibly be borrowed from a friend or relative, interest free.
Terms in Paying Back a Payday Loan
Payback terms will vary from one payday lender to the next. When applying for a payday loan on the Internet, be sure to read all the company's terms concerning loan fees and payback schedules. Some offer several payment options to accommodate your pay schedule and needs. You might be required to pay additional fees if paying back on an extended time period. You can also pay the loan off early, or pay it in full by the due date with a set fee. Extensions can be granted if a situation arises that delays your payment.
Most Internet payday companies will require payment by direct withdrawal from your checking account unless other arrangements can be made. This means your payroll check or other form of income will be deposited into your checking account, and then a set amount withdrawn by the payday company - generally on the same or following day. Keep in mind that direct withdrawal from your checking account means the money must be in the account at the time of withdrawal, or you may be charged additional fees by the payday loan company and/or your bank for insufficient funds. This could add to your financial woes if you're not careful. So be sure to set up your payday loan payback schedule to a date when you are certain the money will be there.
Tips on Choosing a Payday Loan Company
Find a payday loan company that's reputable and has its guidelines laid out in the open for all to read. You should be able to read and understand the terms and conditions before ever filling out an application. Cash loans are popular, but you must be careful to choose a company that's dependable and trustworthy. You'll be revealing important personal information to the lender such as checking account information, so finding a trustworthy payday lender is extremely important.
Check out reviews about the company from other borrowers and sift through the company's website with security in mind. Be sure to print all agreements and keep a copy for your records. Also, write down the contact information for the company and look up the company at the Better Business Bureau online to be sure there are no complaints.
After doing your homework, apply with the company and wait for approval or denial. This could take several minutes to up to 24 hours, so be patient. Your cash will be deposited into your checking account very quickly once the approval process is complete. So take a look around on the Web to find a dependable payday loan company that's right for you. You'll find relief when those money emergencies arise without going through a stringent loan process.