How to get a Pay Day Loan – Finding a way to get the money you need to make your rent, pay your bills and save for your future is hard enough. But when you consider that more than half of Americans are now living paycheck to paycheck, trying even harder becomes a must.
Fortunately, there are plenty of ways to get a pay day loan online without going through traditional financial institutions. Many online payday lenders work with alternative means of payment such as prepayment plans, auto title loans or even installment loans.
These loans have one thing in common: They’re intended to be used for emergencies only. This means that if you can repay the loan on time and on top of your other bills, the lender will be happy to see you again next payday and often offers interest-free periods during which you can borrow again.
What do you need for a pay day loan?
Here are some tips on getting approved for a loan from a Pay Day Loan provider:
1. Set aside cash for emergencies
It’s a common misconception that only bad things can happen when you don’t have enough money. But emergencies, like car repairs, doctor’s bills or even sudden unemployment, can happen to anyone. In these cases, you may not have enough money to cover these expenses with the next paycheck being weeks away. Now, lenders will expect you to have the funds to cover these emergencies and will ask about them in your application. The best way to prove you have the funds to cover such emergencies is to open a savings account and set a small amount aside each month.
2. Be ready to explain what you’ll use the loan for
When lenders see that you’ve used one or more payday loans in the past, they want to know what happened and why you needed another one so soon. While you don’t necessarily have to reveal the details of the previous loan, you do need to be ready to explain why you need another one so soon. The best way to explain is to be as detailed as possible in your application. Tell the lender what happened, what you tried to do to solve it and why you couldn’t find a better solution. Providing enough details will make the lender understand your situation and will be more likely to approve your application.
3. Don’t lie about your current financial situation
While you don’t have to reveal all the details of your financial situation, you can’t lie about it either. This includes not only the details of your current financial situation but also the information you provide about your previous loans. Many payday loan providers offer software that checks your credit history and your financial situation. If the software finds anything out of the ordinary, such as information that doesn’t match your application, the lender will likely deny your application.
4. Make sure you fully understand the contract before signing
Before signing the contract, make sure you’ve read it thoroughly and that you understand every paragraph of it. Make sure you know how much you’ll borrow, how much you’ll repay and when you’ll repay it. If there are any conditions that you don’t understand, ask the lender to explain them. If they can’t or if you still don’t fully understand the contract, don’t sign it.
5. Never borrow more than you can pay back in two weeks
This may seem obvious, but if you’re not sure you can repay the loan on time, don’t borrow the money. If you don’t pay back the loan, the lender will send it to collections and have the right to garnish your wages. This means that even if you repay it later, you may have trouble finding a job with a paycheck. So, don’t borrow more than you can pay back in two weeks.
Although payday loans are useful in an emergency, you should try to avoid them if possible. This is because they are generally much more expensive than other types of credit and they may affect your credit score. If you do need to borrow money, there are many online lenders that you can compare to find the best deal. Once you’ve borrowed money, it’s important to repay it quickly to avoid unnecessary costs. You can do this by setting up a repayment schedule and making sure you stick to it.