How to Successfully Get a Payday Loan
Payday loans (sometimes called cash advances) are small, short-term loans. The loan's payback period generally coincides with your next payday, hence the term "payday loan." Payday loans do not require a credit check in most circumstances; a checking account and a steady source of income, however, are necessary. The annual percentage rate (APR) averages around 400 percent. Such loans should only be used as a last resort, according to the Federal Trade Commission (FTC).
- Difficulty:
- Moderately Easy
Instructions
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1
Gather your checkbook, paycheck stubs (or other proof of income) and your state ID. If you are retired or on a fixed income, gather three consecutive bank statements showing your monthly deposits.
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2
Find a reputable payday lender in your area. Most payday lenders are listed in your local yellow pages. Contact the company ahead of time to determine its operating hours and whether you'll need any additional documents.
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3
Call your nearest Better Business Bureau (BBB) office to find out the company's rating (i.e., whether or not it's in good standing).
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4
Visit the payday lender. Meet with a representative to determine your loan options. Most payday lenders originate small loans, generally $100 to $500 dollars.
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5
Read over the agreement with care. Make sure you understand the terms and conditions of the loan; if you don't, ask the representative to explain it for you.
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6
Write a check to the company for the amount of your loan, plus the lender fee. Receive your payday loan, then pay it back according to the agreement.
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Tips & Warnings
Don't take out a loan for an amount higher than you can pay back with your next paycheck. If you can't pay the loan back, you'll have to "refinance" the payday loan or take out another payday loan to cover the previous one. This is a common problem, according to the FTC.
