7 Important Questions to Ask About Payday Loans
What is a payday loan?
They are loans that provide funds to people that need to access cash within a short period of time. Typically, the borrower will write a personal check in an amount that will be posted dated. The personal check will then be cash once the date occurs; this date usually coincides with when the person is being paid by their employer. A finance charge will be added to the loan amount which is the fee for receiving the funds immediately. These loans are usually in small amounts, under $2,000, and funds are usually required to be paid back within two weeks or a shorter period of time.
These loans are sometimes referred to as fast cash, fast loans, payday advance loans, bad credit loans, paycheck advances, deferred deposit transactions, cash advances, or short term loans.
How do these loans work?
Requirements vary by lender, but in general the borrower typically writes a check for the amount they want to borrow, plus a fee. The borrower will leave the check with the lender. The lender will cash the check once the borrower is ready to repay the loan.
Do I need a credit check to get this type of loan?
One of the many reason people choose payday loans is because they are quick to access and don’t require a credit check.
What documentation do I need to get this type of loan?
To obtain a payday loan you must be at least 18 years old. You will need to bring a government issued identification such as a drivers license, passport or social security card with you when applying. You will also need to have a regular job or other source of income, as well as a bank account.
How long does it take to get a loan?
One of the top advantages of these loans are that the application is easy and the access to the money is quick. Many lenders are able to provide cash within 24 hours, some decisions are immediate. Many loan locations are open 24 hours a day, 7 days a week and there are also online payday loan options.
What if I can’t pay the loan back?
If you are unable to repay your loan when it comes due some lenders will allow you to roll the loan over for a longer period of time, they will most likely require an additional fee.
While payday loans are not secured with collateral, lenders often have access to the borrower’s bank account. If you don’t pay back the lender they can send your loan to debt collections or take you to court for repayment of the debt.
Where do I get a payday loan?
Payday loans are available at many stores that offer services such as check cashing, title loans, rent-to-own, and pawn shops. There are also several websites and online resources that offer these types of loans.