Payday Loan Companies

You download your bank statement and balance your checkbook, and to your horror you discover a discrepancy. You now realize the rent check you gave your landlord will bounce unless you find a way to get a couple hundred dollars in the bank, pronto! The dilemma is that you don’t get paid for several days. This is a perfect situation to look into a payday loan.

Once you get through the crisis and get your payday loan paid off, you will want to start a savings account to grow. You ideally want three months of backup funds to pay your bills in case of an emergency, but take baby steps. Start by saving $10 a paycheck (you won’t miss it) just so that you do not have to use payday loans as a way to pay all your unexpected expenses.

Payday advance stores definitely have their place in the world. However, they are not all created equal; so before you use their services, take a little time to check them out. Some charge higher fees and higher APR (Annual Percentage Rate), so be sure to look over your options so you can minimize the lost income to do this.

  1. APR. Payday loan places will charge you generally between 440 and 652%. That is a wide range. The lower you can get the rate, the less you have to pay back. Make sure you check with the companies you have to work with what they charge.
  2. Apply by Phone. Some payday loan places will allow you to apply by phone to save you time and gas. This is especially helpful if you discover the need while you are at work, or if you just do not have time to waste filling out paperwork and waiting.
  3. Eligibility requirements. Make sure you find out what eligibility guidelines they use so that you do not waste time driving from one payday loan place to another. Most will require you make at least $1000 per month take home pay. That is the amount you net after taxes are taken out.
  4. Employment Status. You will also want to check what their requirements are for your employment. Some will require a permanent full-time position and if you work for a temp service, you may not qualify.
  5. Valid Checking Account. Make sure you have a valid checking account. They are going to require this information in order to process your loan. If you do not have one, before you attempt to get a loan, you are going to need to go to the bank and open a checking account. Look for a simple one and do not get a debit card; that can make it tempting to use it for spontaneous and unnecessary purchases. Look for one that has no or little monthly fees.
  6. Forms of ID. When you go in to finalize your loan, you will need forms of ID, such as your driver’s license and Social Security number. Make sure you check before going over what they will need so you can be prepared.
  7. Email. Many places will require you to have a valid email account as well. If you do not have one, see if a trustworthy friend or family member who has regular access to the internet can set one up for you and will check it for you on a regular basis until your loan is paid off.

Payday advance loan companies perform a useful function in the case of an occasional financial crisis. However, like with any loan or financial decision, be sure to weigh the benefits, your ability to repay on time, and other critical factors. You do not want to put yourself in the position to have to take out payday loans on a continual basis. Just like with many things, they are there if you need them and are a great help.