Everyone’s heard the old saying about living “paycheck to paycheck,” and in fact, this is a way of life for most people. But for some folks, however, these paychecks don’t always cover what life throws their way in between paydays. Car troubles, sick children, unexpected home repairs – expenses like these can really hurt when you don’t have the funds to pay for them. Fortunately, payday loans are available that can help get you through the tough times in between paychecks. Following are some common questions that people have about these cash advances:
What is a payday loan? A payday loan, also known as a cash advance, is a short-term loan that gives you the cash you need to cover expenses until your next paycheck. Most people who apply for payday loans are hard-working people who suddenly find themselves faced with unexpected expenses that they can’t cover until their next payday. Payday loans usually have a term of one or two weeks, as this “emergency money” is used just to get them through until the next payday.
How do I apply for a payday loan? You can apply for a payday loan either by going to an actual loan office or store, or you can find an online lender. Most places will require the following: you must be a U.S. citizen at least 18 years of age with a valid social security number; you must have a steady job with the pay stubs to prove it; you must have either a checking or savings account and be willing to provide statements from the last few months; and you must also make a minimum monthly income of $1,000. Some lenders may also request a proof of residency. You will be asked for this information during your application process, so be prepared with the paperwork on hand.
How much money will I get? The amount of money lent to you will depend upon your income. Most lenders provide cash up to $200 for a first-time borrower; for future cash advances, your loan amount can increase if you’ve shown to be a reliable borrower with prompt payments.
How much is it going to cost me? The fees associated with payday loans can vary, but most lenders charge between $15 and $30 per $100 borrowed.
When do I repay my loan? The maximum time allowed for a loan is 30 days; however, most lenders will want to be repaid at the time you receive your next paycheck. If for some reason you don’t have the funds available on your next payday, you can request an extension of the loan, but this will cost you more money.
If you’ve found yourself in a financial bind and you need money fast, then a payday loan offers a great way for you to cover your expenses until you get paid. Even though you will be paying extra for the cash you get, payday loans provide an excellent means for you to get the cash you need fast.
