Payday loans, also known as cash advances, provide you a way to get some extra emergency cash before your next payday. There are a lot of reasons to use a payday loan, whether you’re a little short on rent or your car broke down and don’t have the money for the repairs. It is not meant to be used over and over again, but in situations where you don’t have any other options. Payday loan lenders can be very convenient if you use them in the smart way, as listed below.
Being Approved for a Payday Loan
The first thing to do is apply for the payday loan, and most companies work in much the same way. Aside from having a checking account with a checkbook, you will also need to show some of your most recent paystubs, provide banking and employment information, have 1-3 references and possibly proof of your phone number or physical address. Typically, a utility bill in your name with your current address is enough. If you are listing a cell phone as your main phone number, bring it with you so they can call it and see that it is in fact your number.
What to Use it For
There are many things a payday loan can be used for. Think of expenses that come up unexpectedly in between paychecks, like a utility or rent bill that is higher than usual, birthday or holiday gifts, lending money to friend, or paying for plumbing or vehicle repairs. These things either cost more than you might have on hand, or need to be paid before you get your next paycheck. Additionally, you can use it for just about anything you want, even if you want to splurge a little and don’t want to pay until your next payday arrives.
Benefits of Payday Loans
You can expect to benefit in a number of ways by choosing payday loans. For one thing, they are very reliable, so you don’t need to worry when an expense or bill comes up in between paydays. Once you visit a payday loan place one time, they will keep accepting you in the future, making you feel more at ease. You will also get money the same day in cash, making it a very convenient option for you. Lastly, you will not have to pay it back until your next payday, whether it is a few days or a few weeks away.
Read the Fine Print
Before you sign your name on anything, read the fine print. Not all payday advance businesses are created equal, so make sure you have done your research. You want to know how long they have been in business, that they are properly licensed as a payday loan business, what their interest rates and other charges are, and the exact penalties if your next check arrives late and you have to pay back the loan a little late. Most places will work with you if you let them know what is going on and can ensure them exactly when their money will arrive. By doing this research, you avoid any surprises or complications and can simply enjoy the benefits of your payday loan.
By following these tips, you will be on your way to using payday loans in the right way, without dealing with companies that are not trustworthy or getting in the habit of getting them on a monthly basis. With the right research done beforehand, you can get the cash you need from a reliable source and no longer stress about the last minute expenses that tend to pop up unexpectedly.