A lot of people have thought about payday loans, but they do not have enough information about them. Although payday loans do involve high interest rates, sometimes there is simply no other way to secure the cash you need in a timely fashion. In order to resolve your financial problems with payday loans in a way that doesn’t cause any new ones, make use of the advice you’ll find below.
Before applying for a payday loan have your paperwork in order this will help the loan company, they will need proof of your income, so they can judge your ability to pay the loan back. Take things like your W-2 form from work, alimony payments or proof you are receiving Social Security. Make the best case possible for yourself with proper documentation.
If you do not have sufficient funds on your check to pay back the loan, a payday loan company will encourage you to roll the amount over. This only is good for the payday loan company. You will end up trapping yourself and never being able to pay off the loan.
If you must get a payday loan, open a new checking account at a bank you don’t normally use. Ask the bank for temporary checks, and use this account to get your payday loan. When your loan comes due, deposit the amount, you need to pay off the loan into your new bank account. This protects your regular income in case you can’t pay the loan back on time.
There are state laws, and regulations that specifically cover payday loans. Often these companies have found ways to work around them legally. If you do sign up for a payday loan, do not think that you will be able to get out of it without paying it off in full.
Choose your references wisely. Some payday loan companies require you to name two, or three references. These are the people that they will call, if there is a problem and you cannot be reached. Make sure your references can be reached. Moreover, make sure that you alert your references, that you are using them. This will help them to expect any calls.
Give the correct information to the payday loan officer. Provide the right income documentation, including pay stubs. In addition, you should provide them with a phone number for contact purposes. Giving a company false information will make it take a lot longer for any kind of loan you’re getting to go through.
Remember that payday loans are designed only for the most extreme of emergencies, such as urgent car repairs or avoiding eviction. These types of loans can be difficult to repay and put you into a vicious debt cycle. Paying it back will reduce your pay and when you only make small payments the interest adds up fast.
Having poor credit does not necessarily mean that you won’t qualify for a payday loan. Many people can benefit from these loans, but they don’t due to their bad credit. Payday lenders usually want to see proof of steady employment rather than a good credit score.
Whenever possible, try to get a payday loan from a lender in person rather than online. There are many suspect online payday loan lenders who might just be stealing your money or personal information. Real live lenders are much more reputable and should offer a safer transaction for you.
If you have to pay for something right now and you have no other way of borrowing money, a short-term loan from a company like Western Union can be utilized. A payday loan can be a viable option, but it should be used sparingly.