Many people find themselves with payments due for bills but not having enough money to cover these bills, as luck would have it, just before payday. To alleviate this shortfall of cash, a large number of consumes choose, some may say in error, to take out a short-term, payday loan.
If you have never used these types of products, you may wonder what happens when you take a payday loan. If you are thinking about using these types of loans, the following tips will give you some information on the process.
Step 1) Locate a lender in your area. You can apply in person, or, in recent times, you can complete the application process online. A word of caution: Be absolutely certain that you are using a secure system before entering your personal information over the Internet.
Step 2) The Lender may, or more commonly may not, check with a credit agency to ensure your credit is sufficient for the loan. Most important for these types of lenders is that you be employed, and can show proof of recent activity within a checking account.
Step 3) Once approved, the funds for your loan are immediately disbursed in exchange for a postdated check. This check is used a security, in the sense that, should you fail to pay on time, and the lender can present this to your bank and collect the loan balance.
Now that you have the funds in hand, spend it wisely. Determine how you are going to pay back this loan in the allotted time. Typical payday loans are for short, short term, 14 days in length. If this is a one-time emergency, you may be fine, but using this as a means to make up for your personal budget deficit is foolhardy.