how to Secure a Payday advance
Life does not always go the way we plan. Unlike the people in business, salaried persons get their paycheck at the end of every 30 or 31 days. Sometimes an emergency occurs and finds you broke. Your car breaks down, or a close family member falls ill, and you find yourself in need of cash on short notice.
Glancing at the calendar, you notice that there are only a few days left before payday. Under the circumstances, you cannot request the employer to give you a salary advance. Since the situation cannot wait until funds hit your bank account, securing a payday advance becomes the only option available.
Requirements for securing an advance
The application process for a payday lending facility is simple. All it takes is to find a licensed lender and provide details that include:
- Your identification
- Proof of employment
- Recent paystubs
- Bank details
Payday advances and your credit score- Does it matter?
Unlike mainstream banks, payday advance loans do not require you to have a favorable credit score. All the lending company wants is proof that you can repay the loan in as little as two weeks.
How quick can I get a payday advance
Once the lender approves your application, you could walk away with money in the bank that instant or in 24 hours.
What are the fees?
Payday lenders charge a lending or processing fee plus interest which the borrower must pay in addition to the amount they borrowed. Usually, the interest rate is higher than that charged by conventional institutions such as banks.
where to look for a payday advance
While seeking a cash advance, it is best to spread your search wide. Despite the pressure for a quick fix, spend some time comparing options from different loan peddlers. Look for lenders located in your town or city, a physical location that you can visit if the need arises.
Better yo look online
A more convenient way is to work with online payday loans websites. Compare their fees and interest charges and proceed to borrow from a reasonably priced loan company.
Make sure you have a checking account
You must also ensure that you operate a checking account with your bank. That way, the lender can recover their dues via a direct debit once your paycheck clears with the bank.
The issues ot look out for
double check fees and interest rates
Moreover, choose a lender that offers you free information on the type of loans available, their fee and interest rate. If a lender is cagey about their costs, avoid borrowing from them and move on to the next company on your list. Plan to repay on time and if you cannot, discuss the possibility of having the loan roll over to the next month.
Let wisdom prevail
As the person with the burden of repaying a payday advance, do not sign for a loan whose terms you do not understand. Pursuant to the US money lending laws, companies in the money lending business should make full disclosure of their fees.
be careful of bad actors
There are online scammers out to lure you into a trap so you must be cautious. Nonetheless, you can report lenders or confirm their licensing status through the Department of Business Oversight. Play safe by dealing with a lender that puts the money into a borrower’s bank account via a direct deposit. That way, you could have the funds ready within a business day.
Know your APR
At the same time, ensure that you have seen and understood the annual percentage rate on your loan before giving consent. While the calculations may at times look baffling, you should not worry. The most important thing is that you obtain a comparison between your loan and other borrowing options. When calculating the APR, you compare the fees and interest to the borrowed amount over a period of one year.
BBB payday advance lenders
You can also visit the Consumer Financial Protection Bureau website where you can learn more about these calculations and everything else you wanted to know about getting a payday advance.
Avoid the ‘additional cash’ trap
Some lenders can offer to advance you more cash than what you have requested. If you encounter such a scenario, be wise enough to turn it down. Although the offer might appear as a godsend, you will end up paying more than you can reasonably afford.
Considering that this is not free money, discipline yourself to borrow what you need for the moment. Be patient and hold the urge until your paycheck comes through. On the other hand, be truthful and honest in the details you fill on the application form. Otherwise, the little lies could come back to haunt you in future.
Best time to seek out payday advances
When can you resort to a payday advance? Emergencies arise unexpectedly leaving you feeling helpless and stranded. Considering the high cost of borrowing, only resort to payday advance loans during crises. A car breakdown, accident or illness are events beyond your control and cannot wait until payday.
However, a new PlayStation version that hits the market is not an emergency. Once you get the money, prepare a cash spending plan and allocate funds to repay your payday loan. Doing so cushions you from high interest and late fees.
Useful legislation that can be of help
USA financing law makes it mandatory for every financial lender to obtain a license for their activities. The same bill also defines a lender as anyone carrying out the business of making commercial and consumer loans.
Especially in Californa
While searching for the ideal lender, you can ascertain whether they are licensed by the California Deferred Deposit Transaction Law (CDDTL). The legislation, also known as Payday Lenders Law deals with the agreement between a payday loan borrower and a lender. Any person or corporate body that arranges for deferred deposit must obtain a license under this law.
Payday advance regulations in California
Through the umbrella body, the Community Financial Services Association, payday lenders are now better placed to offer better services and conform to regulation. These and other measures have resulted in a diversity of products and stronger policies to safeguard consumers. By dealing with lenders who are members of this body, you can rest assured of securing a product that meets your credit needs.
Days before the month ends, your budget grows thin. It is not unusual to find that you do not have money for unplanned expenses. Be it as it may, an event crops up that requires you to get cash on short notice. A payday advance becomes your only borrowing of choice.
Ensure that you have all the requirements, and proceed to search for a lender. You should also keep in mind that getting these loans is not one of the long-term financial solutions available to salaried people. Ensure that you repay this loan immediately you get a paycheck. Other debts like credit card payments should come next.