(Newswire.net — April 22, 2019) — Every year, more than 12 million Americans take out payday loans.
Many people take out payday loans because they’re known for being easier to qualify for than other types of loans. This is definitely true, but that doesn’t mean you’re guaranteed approval.
If you’re considering taking out an emergency payday loan, you can’t afford to have your application turned down. You need to make sure you’re following the right process to make sure you get approved and get the money you need.
Listed below are five steps you need to take if you need to apply for an emergency payday loan.
Why Use an Emergency Payday Loan?
There are lots of reasons why you might want to use an emergency payday loan instead of other financing options.
The following are some of the greatest benefits of taking out a payday loan to get you through a tough spot:
- Simple application process
- No limits on how you use them
- Low fees (as long as you repay the loan on time)
- Good for people with bad credit
You can also, in most cases, get approved for a payday loan very quickly. Often, within 24 hours, you’ll know if you can get the money you need.
When you take out a payday loan, there’s no need to spend time calculating the current silver price and figuring out which pieces of jewelry you can sell to your local pawn shop.
5 Steps to Get an Emergency Payday Loan
There are definitely situations in life where an emergency payday loan makes the most sense. If you’ve decided that taking out a payday loan is the best approach for you, here are the five steps you need to follow to have your application approved:
1. Meet Basic Requirements
The first step you need to take when applying for a payday loan is to make sure you meet the basic lending requirements. In most states, the basic payday lending requirements are as follows:
- Be at least 18 years of age
- Have an open and active checking account
- Provide proof of identity
- Provide proof of employment
You may need to provide proof of income as well.
2. Fill Out the Application
If you meet all the requirements listed above, you’ll likely be able to get approved for an emergency payday loan. Before you can get approved, though, you need to fill out the application.
Whether you apply for a loan and fill out an application in person or do it online, the application should be relatively short.
If you have to fill out tons of paperwork and provide a lot of information, this could actually be a red flag that the lender is not trustworthy.
3. Sign the Agreement
Once you’ve filled out the application, you’ll sign the loan agreement. You can do this online or in person.
Remember, signing a loan agreement is a big deal. Before you agree to the terms of the loan, make sure you understand them.
Pay special attention to things like the date by which the loan needs to be repaid, the interest rate, and the consequences if you do not pay the loan back on time.
Consider the rollover options, too. If you can’t repay the loan on time, can you roll it over into your next pay period? Are there any penalties for doing this?
4. Await Approval
Once you’ve signed the loan agreement and filled out the application, you’ll just have to wait to find out if your application has been approved.
Most payday lenders have a 24-hour turnaround time, and you’ll find out their decision within one business day.
Sometimes, you can get a decision even sooner, especially when you apply for payday loans online.
5. Get Your Money
If your application gets approved, you’ll be able to collect your money right away. Often, it’s deposited into your bank account within one business day.
If your application gets denied, find out why. Then, you can fix the issues and apply again, or you can look into alternative financing options.
Finding the Right Lender
You can increase your chances of approval quite a bit if you work with the right payday lender. The following are some signs that you’re working with a credible lender:
- They have an actual address and phone number (this is especially important when you’re applying for payday loans online)
- They have positive online ratings
- There aren’t any complaints against them with the Better Business Bureau
- They’re transparent about their rates, fees, and lending terms
- They respond to inquiries quickly
You should also make sure the lender is complying with your state’s specific payday lending laws. Many states have maximum amounts that lenders can allow people to borrow — if your lender exceeds this amount, that’s a red flag.
Paying Back Your Payday Loan
Many people are wary of payday loans and assume that they’re impossible to pay back.
You can definitely pay back a payday loan, but you need to be strategic about it. Otherwise, you could end up trapped in a vicious debt cycle.
Set a reminder for yourself or write the date down on your calendar so that you know exactly when the loan needs to be repaid.
Be sure to only borrow the amount you need, too. Avoid rolling the loan over into your next pay period as well. This only adds interest to the loan and causes you to end up paying more money over time.
Get more Financial Advice Today
Now that you know more about the process of applying for an emergency payday loan and paying it back in a timely manner, are you ready to go ahead and apply?
Keep these tips in mind and you’ll have a much easier time getting approved and getting access to the money you need.
Do you want to learn more about managing your finances? Maybe it’s not your personal finances that are an issue, but your business finances?
If you’re looking for business-related financial advice, be sure to check out this article today. It’ll teach you everything you need to know about which areas of your business you ought to invest in.