Payday

How to Get a Payday Loan in 5 Simple Steps

More than 40% of millennials in the United States are utilizing payday loans.

Payday loans are short-term and typically offer less than $500. This money has helped people pay bills and get food on the table.

If you are falling behind and need an extra boost, a payday loan may be just what you need. 

Continue reading to learn how to get a payday loan online, so that you can get control of your finances again! 

1. Know What You Need

If you want to learn how to get a payday loan that will benefit you, you must know what you need.

Before diving into the endless loan options, you should consider the time length you want for the loan, the size, and how it will impact your life. Some of the most common types of loans are mortgage loans, auto loans, student, and small business. 

Evaluate your situation so that you know what to research.  

2. Check Your Credit Score 

Do you know what your credit score is? When was the last time you checked?

Many credit companies can run free credit checks throughout the year. If you don’t have this option, you can get a free score once every year. When your credit score falls below average, interest rates and options become limited.

The better your credit score, the better your terms and conditions will be for your payday loan. Take the time to give it a boost if you need to! 

3. Do Your Research 

While you are working on increasing your credit score, you should also be researching various loan companies.

By comparing rates and benefits, you can determine the best loan that you qualify for. This step can become overwhelming if you don’t know what you are looking for, so be sure to follow step 1, mentioned above. Another excellent way of researching loans is by asking friends and family for referrals or checking online reviews. 

4. Apply for the Loan

Once you have a solid credit score and have found a loan that works for you, you can begin applying online! 

When applying, you will likely need documents proving your employment, social security number, and ID. Depending on the type of lending company you are working with, you may also need to provide proof of income along with a list of your other debts. 

5. Move Forward

Within a day or two of applying for your loan, you will find out if you have been approved or not. 

If you are approved, details will be sent over, reviewing your loan and repayment terms. For those that find themselves unapproved for a loan, you may want to try another option. Take a look at the reasons why they declined you so that you can fix them moving forward. 

Learn How to Get a Payday Loan Today 

By learning how to get a payday loan, you can prevent financial problems in the future and get control of your life. 

If you are seriously considering applying, you will want to do your research and get your credit score above average. Doing these, before applying to a loan, can help save you money. 

Be sure to check out our blog for more articles about loans and how you can get better control of your finances! 

Getting a Payday Loan: What to Know and Some Different Options

The average amount of loan debt that a person in the United States carries is $38,000. For some of you, that number might seem rather high but the truth is, if you put 10 adults in a room, chances are that a good portion of them are in serious debt.

Given our nation’s debt crisis and the fact that bills never slow down, it stands to reason that many people might get to a place where there’s not enough money to meet their financial obligations.

A popular solution to this problem is to take out a payday loan.

Are you experiencing serious getting payday loan FOMO? Are you curious to know more about what these loans entail?

You’ve come to the right place.

Below, we breakdown payday loans and share with you a handful of potentially helpful alternatives.

Getting Payday Loan: What Does It Entail?

A payday loan is a lending product. The way that they work, in many cases, is that you write your lender a check for the amount of money that you’re borrowing. This amount should equal to or lesser than the amount of money you’re planning on getting from your next paycheck.

Once your paycheck goes through, your lender will cash the check that you’ve given them, plus interest, and your debt will be paid.

In the interim, with your loan in hand and secured by the promise of next month’s check, you can use your borrowed cash to buy whatever it is that you need that could not wait until your next pay period.

Why Do Payday Loans Get a Bad Rap?

It’s hard to find a story today that showcases payday loans in a favorable light. The reason for this is that payday loans come with what is called an interest rate.

Interest rates are pretty simple.

If you borrow $100.00 at a 10% interest rate, you’d owe your lender at the end of the month $110.00 (your original loan amount plus 10%). If you didn’t pay your lender on time, at the end of the month, your loan balance would continue compounding and you’d now owe your lender $110.00 + 10% interest ($121.00).

Most payday loan providers do not offer loans at low-interest rates like 10%. Some charge interest rates that are 50% or higher. Furthermore, certain loan vendors will add a ton of miscellaneous fees to your borrowed money which is also eligible for interest accrual.

Given these seemingly dishonest tactics and the fact that poor people are payday loan provider’s biggest customers, many financial experts and politicians have condemned them.

What Are Payday Loan Alternatives?

If you’d rather not get caught up in the cycle of paying back payday loans, you might have other options to get out of the financial situation that you’re in. Here are some quick-fire suggestions that may be worth exploring.

Talking to Friends and Family Members

If you’re in a tight spot financially and have people that love you, those people might be willing to help you out. It’s always a dicey proposition borrowing money from friends and family since you don’t want to lose your relationship if you can’t pay them back.

Still, if you’re close with people that you know would want to help, let them.

Take Out a Loan From Your Bank

Dealing with payday loan lenders can be tricky since not everyone is offering transparent products like the First Finance payday loan or similar reputable products.

To make sure that you’re borrowing from a lender that is not likely to burn you, try to get a loan from a bank that you trust.

Getting bank loans is subject to credit approval. That means that you could be rejected.

It’s certainly worth trying to get approval though, no matter how bad your credit is, if your alternative is taking out a predatory payday loan.

Talk to the People That You Owe

Communication can go a long way when you owe people money. They’d rather work with you and get what they’re owed back as opposed to putting so much pressure on you that you break and choose to default.

Reach out to the people that you owe and try to arrange to have them forgive portions of your debt or spread it out before going down the getting payday loan path.

You might be surprised by the arrangement that you’re able to come to.

Explore Financial Help

At the end of the day, if you’re really falling on financially hard times, no amount of reading generalized blog posts is going to solve your situation. Sometimes, you need the help of a professional that can look at your specific situation and guide you.

That expert is usually what is called a financial advisor and many communities offer them for free to low-income people.

Go to city hall or run a quick Google search to see if there are free financial planners that work in your area. Steer clear of any planner that works on commission as they might try to move you towards buying products that will only hurt your situation.

Closing Out Our Guide on All Things Payday Loans

Thousands of people type “information about getting payday loan” into Google every day in hopes of seeing whether or not this lending product makes sense.

While we can’t advise you specifically on whether or not you should take the payday loan leap, we do hope that you now feel more informed and can make that decision for yourself.

If you find that you’re in need of more help, our team is here for you! Check out more of the content on our blog and start growing your financial savvy!