7 Payday Loan Facts That You Must Know

Everyone has financial problems at some point and loans may be the loan option to get back on track. While you can try to get loans from your family or friends, it is not always possible. A payday loan may be the only solution.

As the name suggests, payday loans are short-term. They are meant to help you take care of your financial obligations while you wait for your next paycheck. They are small loans and often not enough to take care of large expenses. If you plan on taking out a payday loan, the following are a few facts to keep in mind.

1. You Need a Payback Strategy

Even though most payday loans are small, you must have a strategy to pay them back. Do not take them for granted as they can put you in huge financial debt if not paid on time. Most of the loans need to be paid within 14 days. If you do not have the money to pay your loan on time, consider getting a different payday loan for it. Having a clear payback strategy is always a good idea.

2. The Loan May Be Denied

There are plenty of reasons why your payday loan may be denied. Even though it is an easy loan to procure, there is a chance that you may be denied. The most common reason for denial is failing to meet the eligibility requirements related to employment status and age. If you do not provide correct and truthful information when applying for your loan, it is unlikely to be approved. Check the eligibility requirements and ensure that you meet them before applying for a loan. That way, you can reduce the chances of denial. When filling out your application, provide complete and correct information.

3. You Can Get It With Bad Credit

Bad credit does not automatically disqualify you from getting payday loans. You can get them regardless of your poor credit rating. Unlike traditional loans, they have simple formalities of approval. You can qualify for the loans if you have reached the legal age, have a checking account, and you are employed. You can get the loans even with no credit history.

4. You Can Get Them Online

One of the most interesting facts about payday loans is that they are available online. You do not need to rely on the traditional options. This means that they are convenient and you do not need to go through too much trouble to get them. There are plenty of websites that may offer payday loans. Look through them and find your best option. Check out GreenStarCash if you are looking for same-day payday loans. The application process takes a few minutes and you can get your loan within 24 hours.

5. You Need to Write a Check

You must write a check if you want to procure a payday loan. The loans typically extend to a few hundred dollars that you have to repay within a few weeks. To get the loans, you need to write a post-dated check for what you want to borrow. You also need to add a finance fee. The lender will cash in the check when your loan is due.

6. You Need a Good Reason to Take Out a Payday Loan

The interest rates on payday loans are significantly higher than on traditional loans. You should, therefore, have a good reason to opt for them. Most borrowers use the loans to take care of important bills, for medical emergencies, or buying new stock for their businesses. If you do not have a valid reason to take out a payday loan, you may end up wasting your money. Whatever your reason for seeking payday loans, ensure that you have a good plan to pay it off.

7. The Payment Date Can Be Extended

If you are unable to pay your payday loan on time, you do not need to worry. You can request your lender to extend it to a later date. However, most lenders will charge you a higher fee since it will accumulate for longer. Even though extending your repayment date is possible, it is not always a good idea.

Payday loans are great. They can be lifesavers when you have no other way to get funds for your regular expenses or emergencies. They are fast and you can qualify for them regardless of your credit rating. However, you need to be careful with them. Do not borrow the loans unless you need them and have a clear repayment strategy. If you do not pay the loans on time, you may waste a lot of money on interest.