What you need to get a payday loan
What is a payday loan
If you’ve ever encountered a situation that requires extra cash quickly, like car troubles, medical bills, or any other unexpected expenses, you may have considered taking out a payday loan.
A payday loan is a short-term loan typically for smaller amounts of money that are designed to be fast and easy. People with less-than-perfect credit can often be approved for payday loans, so they might be a good option to consider if you need some extra cash fast. Whatever the reason for looking at payday loans, this article will provide a basic breakdown of some things to expect when requesting one.
So, what exactly do I need to get a payday loan?
If you decide a payday loan is the right option, there are a few facts to know about these loans so you can be well set up for a positive experience.
The Consumer Finance Protection Bureau (or CFPB) has rules and regulations that apply to most payday lenders. Most are required to have certain terms and conditions for borrowers in order for them to qualify for a loan. For example, a potential borrower will usually need:
- Some proof of income
- To be at least 18 years old
- Valid identification (including social security number and photo ID)
- A checking or savings account
- A phone number for verification
- Residence in the state where you are applying for a loan
- Not active military
- Not involved in a current bankruptcy case or intend to file for bankruptcy
Where can I find payday loans?
Traditional big banks may not offer payday loans, so you might want to look elsewhere if you’re looking for this kind of loan.
You may have seen payday loan storefronts in your town or city, and these brick-and-mortar buildings are one option for payday loans. But recently, there’s been a growing trend of online lenders who are willing to give payday loans to borrowers with less-than-perfect credit.
Getting a payday loan online has several benefits. It may be more convenient than a storefront option, as the process can get started right from a computer. And getting a loan online can sometimes be as fast as 24 hours, so if you need cash right away, it might be a good option.
When is a payday loan a good idea?
It depends on the individual circumstances, but there are several instances in which it might be worth considering a payday loan. If you need cash quickly and are confident you will be able to pay back the loan in a short amount of time, a payday loan can be a solution. For example, if your car breaks down and you need it to get to work, a payday loan could help pay for the repairs to get you back on the road. Of course, every situation is different. If you think a payday loan might not be the right choice, other options include asking friends and family for money, taking on some extra work or odd jobs to get some extra cash, or selling some unused or unwanted belongings.
Is there anything else I should know about payday loans?
As with any loan, it’s important to carefully review the loan terms before deciding if it’s the right option. Loans often come with penalties or fees for late payments. Having a good understanding of the terms can help make sure you know the timeline and cost that is expected. Interest rates and other terms can vary depending on the loan or lender, so make sure to take care before requesting a loan.