How to find the top online payday loans
In life, accidents, emergencies, and rainy days are bound to happen. You may find yourself in a situation where you need money in a pinch.
There are always unexpected emergencies that come up in life and it’s good to know you have a lifeline if you need it.
This is where a payday loan can be a huge help The application process is quick and you can typically have access to the funds you need in no time.
Check out the guide to payday loans below for everything you need to know about how to find the top online payday loans available.
Finding the Top Online Payday Loans
Choosing the best online payday loans for you can seem like a daunting process. While there are several different loan companies out there, what makes one better than another?
You always want to feel comfortable with your lender, first and foremost. If you’re shopping for a payday loan, you’re often already in an emergency situation and the last thing you need is more stress.
Since you typically need funds quickly in these situations, an online lender may even be able to offer you instant loans.
In addition to speed, there are several other factors you should consider when looking for the best payday loan company for you.
What is a Payday Loan?
Let’s begin by talking about the basics of what a payday loan is. A payday loan is money you borrow from a traditional bank, an online lender, or a payday loan retailer to get you through to your next payday.
Payday loans are usually short-term loans borrowed at a premium until your next payday. Payday loans are also usually for a small amount of money. While the amount borrowed may vary, they are typically for $500 or less.
The amount borrowed through a payday loan will usually be due in a single payment on your next payday. You may also use the income from Social Security, your pension or child support payments.
How a Payday Loan Works
When applying for a payday loan, you and your lender will address the amount of money you need to borrow. After a typically short application period, your funds will be given on a prepaid debit card, in cash or they will electronically deposit the money into your bank account.
Before receiving the funds you will agree upon a set payback time with your lender. You will also agree to their terms, fees, and interest rate charges.
To payback a payday loan you may post-date a check for the due date or in most cases your lender will automatically debit the funds from your bank account electronically.
In some cases, your lender may offer you installment payments. These payments will be made over a short period of time and you won’t need to pay off the total amount in full. Beware of the fees and interest rates you’ll be paying in these scenarios, however.
Uses for a Payday Loan
There are tons of reasons you may need a payday loan to help you through a hard time. From medical emergencies to overdue bills, there are always unexpected events that happen in life.
The list below shows a few of the most common reasons people use payday loans.
1. Medical Emergency
When it comes to medical care, you can’t put off treatment for you or a loved when you need it most. In terms of the health of you and your family, your life is more important than any amount of money.
A payday loan can help you pay for emergency medical care that arises in between pay periods.
2. Car Repairs
Unfortunately, we all need a car repair at some point. And these repairs usually come at the worst times and when we least expect them. This is where a payday loan can come in handy.
You can use a payday loan to make the repairs you need to get your car up and running again. Once you get paid next, you can pay off the loan as soon as possible.
3. Utility Bills
If you’ve had some recent financial hardship, your bills may be piling up. When it comes to keeping your lights on and having heat in your home, paying your bills on time is crucial.
A payday loan can literally help you keep your lights on and your house safe until your next paycheck. You can use a payday loan to bring your bill up to date.
4. Creditors
When you’re having trouble financially, one or more of your accounts may be in collections. Collection agents have one job to do, and that’s to get your money. A creditor is hired to help get you current on your bill.
A payday loan might be able to help you pay off your debt with a creditor. You may be able to get your account out of collections by doing so.
You should make sure to stay on top of your payments after this so you don’t repeat the cycle.
Characteristics of the Best Payday Loan Companies
When choosing a payday loan company there are a few characteristics you should always look for.
First, look for a company that is reputable and professional. You can do this by reading reviews, seeing how many reviews they have and asking friends for a referral. You always want to make sure the company you’re using is professional as well.
Next, make sure you understand all of the terms and fees that come with a payday loan. These types of loans tend to be more expensive so never borrow money if you can’t pay it back on top of all the fees and costs.
How to Apply for the Best Payday Loans
Applying for the top online payday loans is usually a pretty simple process. Once your basic information is verified, some lenders may require a credit check.
If you’re unsure about what your credit score is, you can download a free copy of your credit report every year through the Federal Trade Commission.
Next, you’ll typically be required to show your proof of income. The lender will want to make sure you’re able to pay back the loan by the agreed-upon amount of time.
Check out the finance page for more great money tips.
