There is something basic but nonetheless important information that you will need to know when it comes to getting a payday loan. This information will help you to get the money you need while minimizing some of the risks that come with these loans. The more you learn about payday loans, the better of a position you will be in to get the financial assistance you need when a crucial and unexpected expense suddenly arises in your life.
Maximum Lending Amount
The maximum amount that payday lenders are allowed to give borrowers depends on the laws and regulations of the state they lender is in. It’s important to keep in mind that most of these lenders will not allow you to borrow more than you can afford to pay back based on the income information you provided them with in your initial application. This means that the maximum amount that you can borrow will be determined by where you live and how much money you make.
You’ll have about 2 weeks to pay back the loan
You will most likely only have about 2 weeks to pay back the money you borrow with a payday loan. While sometimes it is only 1 week, usually the lender will give you until your next paycheck to pay back the loan in full. It is essential that you know exactly when your loan must be paid back so that you don’t end up being late at all. If you are even a single day late paying back your loan, you will more than likely have to pay some heft penalty fees. You can avoid this by simply knowing when you need to pay back the money and setting it up so that the money is automatically taken out of your checking account on the right day.
Your chances of getting approved are fairly good
One of the reasons that so many payday loan lenders apply for payday loans is because they know that their chances of getting approved are fairly high. If you have been turned down for a loan by your bank or credit union in the past, you won’t want to let that discourage you from applying for a payday loan. While it’s true that approval is never guaranteed with payday loans, the chances of getting approved is significantly higher than other types of loans that a bank might offer.
A Credit Check is Likely
It’s also important to keep in mind that you will probably have to submit to a credit check when applying for a payday loan. Most of these lenders do run a credit check on applicants, though it’s not always with all three of the major credit bureaus. Those who have bad credit aren’t necessarily going to get rejected for the loan they apply for. This means that even if you have a low credit score, you should still fill out an application because you might get approved anyway.
Interest Rates aren’t as bad as you might think
A lot of people are hesitant to even apply for a payday loan even if they need one because they are afraid of the horrible interest rates. The fact is that even though interest rates on payday loans can be higher than other kinds, they usually still aren’t as bad as most people think. It is important that you know how much interest you are going to pay on your loan before signing a contract with a lender so that you have this information beforehand.
Payday Loans can be a great way to get Cash Now
The fact is that payday loans offer many people who need cash right now for some important expense a way to get it without having to wait a long time. While you might expect to have to wait a week to get your funds with other types of loans, this is not the case with a payday loan. With this type of loan you will most likely get your funds within 24 hours after you have been approved. It is highly recommended that you apply on a Monday or Tuesday if possible to increase the chances of getting your money quickly before the weekend hits.