Financial emergencies can spring up in anyone’s life, at one point or another. These emergencies may range from education fees to medical bills and from mortgage payments to money for funeral ceremony arrangements. Payday loans can be a way out of these emergencies.
Payday loans are small, short-term loans to be repaid at the borrower’s upcoming payday. If you have an emergency, you may get a payday loan by applying online or in-store or from payday loan direct lender. Here are the steps you can take to get emergency payday loans:
Step 1: Assessing Affordability
The first step in the application process for a loan is asking yourself whether you can really afford it. Payday loans usually have high interest rates and it might be best not to pile on more interest on the debt you already have.
Step 2: Finding a lender
Traditionally, borrowers visit a number of payday stores to compare a variety of competing offers. Before applying online, you might use a lender-matching website to search for online lenders. It involves filling a form with your basic information which is then used to find the best loan providers.
Step 3: Applying for a loan
Once you contact your lender, the next step will be signing a loan application. You might fill this online or in the store. If you meet their requirements, you will be presented with a loan agreement for signature.
This step is crucial. Read the agreement carefully before signing it. Pay special attention to the terms and conditions. Look out for any hidden fee. Make sure that the loan fee does not exceed the state limits of how much a lender is allowed to charge you.
When you are absolutely sure about the suitability and affordability of the agreement, you may proceed to sign it.
Step 4: Receiving the money
After signing the loan agreement, the funds will be transferred into your bank account. This process may take at least one day.
Step 5: Repayment of the loan
Online lenders can automatically withdraw money from your account on the due date. You may need to pay additional fees if you do not have money in your account at the time of repayment.
In-store application process
In order to secure a loan through a payday lending store, you must first visit the store. The primary step in this process is that you must write a post-dated check to the loan provider in the amount of the loan plus additional fees.
You must repay the loan, in person, on the maturity date. Otherwise, the lender may decide to cash the check. If it bounces due to a shortage of funds, you are now liable to pay a bounced-check fee in addition to the earlier charges. So make sure to pay upfront to avoid the hassle.
Usually, before securing a loan, you need to verify your employment status and history as well as income status through play slips or bank statements. Some payday lenders also demand additional information such as credit history and the amount of loans you currently have at a given time.
In some online application procedures, documentation may be required for verification via fax or other modes.