Payday loans can be a great way to get a short term loan quickly when you are in need of fast cash. Getting a payday loan is also relatively easy, even for those who have a bad credit history. Many payday loan companies will give you a loan as long as you have a current paycheck stub and an open checking account. The process is also fast and easy. Detailed below are the steps you need to take when getting a payday loan.
- First, you should decide whether you want to apply for a payday loan online or in person at a local location. Either way, the steps to obtaining a payday loan are going to be the same, but there are certain advantages to each choice. If you apply online, you can do so any time of the day or night and you will not have to spend time and money driving to a location. If you decide to apply in person, you will have a live representative of the company right there to answer any questions you have or help you through the application process.
- Once you know how you want to get your loan, make sure you have the required information prepared. This includes your bank routing number, checking account number, and verifiable documentation of your income (most likely your paycheck stub).
- Next, go to the payday loan company's website or location and fill out an application. Often these applications are short and uncomplicated.
- If you have elected to apply online, you may need to fax over your paycheck stub or any other documentation that the company requires.
- Finally, the company will run your application and let you know if you are approved. Most people will be approved for a payday loan as long as they have a job (verified with a paycheck stub or other documentation), have never bounced a check before, and have an active checking account.
- The loan company will usually deposit your funds into your checking account the next business day.
- When payday arrives, you may have the choice to allow the payday loan company to withdraw the entire amount from your checking account or make regular monthly payments. This last option will require you to pay additional interest charges on top of your loan amount.
Although payday loans can be a great short term loan alternative for many people, they can also be very expensive if handled improperly. If for some reason the payday loan company is unable to withdraw funds from your checking account on payday or you miss a scheduled monthly payment, you will likely have to pay a returned check charge, additional interest charges, and possible other fees.