Getting a payday loan can be a great way to get the money you need in an emergency. With so many options available, it can be challenging and confusing to find one that is right for your needs.
The following three steps will help you navigate this process and find a payday loan that suits your needs.
Step 1: Determine your borrowing needs
How much money do you need? How quickly do you need it? What interest rates are acceptable to you? The answers to these questions will help you find the right payday loan.
The first thing that you need to do is determine how much money you need. Do not take out more than what you actually need, as this will only lead to bigger problems down the road. Consider how much money you have in the bank, how many bills are due soon and what your expenses will be over the next few months.
The second thing that you need to consider is how quickly do you need the money. One of the benefits of a payday loan is that it’s usually available in one day or less. If you need the money immediately, a payday loan could be a good option, but if you can wait a few weeks, a personal loan with a lower APR may be a better option.
Thirdly you need to decide what the interest rates are that you are willing to accept. Payday loans often have high interest rates and you should factor this into your decision. While the APR and terms you are offered will be based on your credit score and other individual factors, payday loans are usually the most expensive loans. They frequently cost upwards of 400% in APR.
Before taking out any loan, it’s important to think about whether you will be able to repay the money. For example, if you’re considering a payday loan but are not sure that your income is steady enough, then this type of loan might not be for you.
If you are confident that a payday loan is what best meets your borrowing needs, it’s time to shop around for the best deal you can get!
Step 2: Find a Lender That is Right for You
There are many loan providers that offer payday loans, and they each have different rates and terms so it’s best to thoroughly look around before you commit.
When comparing, make sure to compare the APR and terms of each lender. The APR is the annual percentage rate and it’s what tells you the total amount of interest that will be paid on a loan.
Keep in mind that some lenders have lower rates but are stricter when approving borrowers, while others may approve more people with higher APRs. Thus, the APR is not the only factor to consider, but as narrowing it down can be difficult, so we still recommend narrowing it down by APR before anything else.
Be sure to ask about the company’s fees. Some charge as much as $25 just for applying, and while this is included in the APR, it can make a big difference if you either pay off your loan sooner or later than expected.
Early termination fees, for example, could even make your loan more expensive if you repay it sooner. Make sure that there are no hidden charges before signing any agreement with a payday loan provider.
Compare the lenders who meet your criteria, and choose one with good customer reviews. Payday loans can work well as long as they come from a reliable source, so you want to make sure that the lender you choose is trustworthy.
If, however, this process still leaves some ambiguity and uncertainty then it might be a good idea to talk with someone in person. Some people prefer this option because it’s more convenient and they can get one on one advice from a representative of the loan provider.
Step 3: Apply for and Receive Your Loan
Once you’ve found a lender that meets your needs with an interest rate you are comfortable with, it’s time to apply.
The loan provider will need some information from you in order for the application process to be completed. You can speed up the process and maximize your chance of being approved by preparing the required documentation in advance.
They’ll ask for your personal information, and a copy of your ID or driver’s license. The loan provider will also need to verify some of this information by running a credit check.
The lender will also need to know whether you are employed or not, and they’ll also want an income verification form that states your income, such as a payment stub.
If approved, the funds will be wired to you in as little as one day!
Now you know how to get a payday loan in three easy steps. You can find more resources on our blog about loans, and always feel free to contact us with any questions or concerns!