If you’re like most Americans, you’ve struggled financially at least once in your lifetime. Whether it’s an emergency medical procedure that throws off your budget or a major lifetime event, such as a wedding, financial issues can cause stress and lead to further problems down the road.
A payday loan is a short-term loan that can be paid back easily – often with your next paycheck. It doesn’t take long to apply for a loan and get approved, so you can have your money faster than you thought possible. Let’s look at some the things you need to know before applying for a payday loan.
General Requirements for Payday Loans
When applying for a loan, you will need to fill out a preliminary application. This application allows you to provide the loan provider with all the necessary information needed to approve your loan and determine how much you will receive.
Once the application has been submitted, it takes only a few minutes to determine your eligibility. If you’re inside a physical store, you will receive your loan on the spot. When getting a payday loan online, you will receive your money as soon as possible – often the day after you have been approved.
Depending on the way you are applying for your online loan for bad credit, you may need to provide additional information. For example, when you apply for payday loans online you will need to provide an email address while Dallas residents getting an in-store payday loan may need to provide a personal check.
General payday loan requirements include:
- ID issued by the government
- Social Security Number
- Proof of income
- Active checking account
Can You Get Rejected for a Loan?
You may be surprised to learn that the requirements for a payday loan are so simple – you can even get a loan with bad credit.
Though you don’t need much to apply and get approved for a payday loan, you may still be rejected by a lender due to several factors. Some of the reasons you may not be eligible to receive a loan include:
- You do not meet income minimums
- Repayment requirements are not met
- You have an active or recent bankruptcy
- Checks have been bounced recently
- You bank account has not been active long enough
- You have a loan outstanding
Where Can I Get a Payday Loan?
As mentioned above, you can get payday loans from several sources – both in person and online. Online personal loans can be found by using available search engines, which will connect you with the best payday loan providers in your area. You can also use the internet to look for physical establishments where you can speak to someone in person about the loan you want.
How Much Will My Loan Be?
The amount you receive when you’ve been approved for a payday loan can vary depending on several factors, however you can still get a loan with bad credit. Small loans can range from $300 to $1,000, which will be deposited directly into your checking account if you get an online loan. Payday loans can be paid back on your next payday, but you can also apply for an installment loan, giving you more time to pay back what you’ve borrowed.
Payday Loans vs. Installment Loans
You may be wondering – is there really a difference between a payday loan and an installment loan? The short answer is yes – there’s a difference between the two. While the application process for these loans may be similar and you can receive money quickly, repayment terms vary vastly.
Payday loans will typically need to be paid back by your next paycheck in a lump sum, so you will need to pay the total amount back to avoid being charges fees and added interest. Installment loans can be repaid in regular installments over a specified period of time, giving you more time to budget accordingly and get back on track financially.
Should I Apply for a Payday Loan?
You can apply for a loan for any reason – to pay bills, repair equipment, buy necessities, and more. They can be useful when an emergency strikes as well, providing you with the money you need to continue pushing forward. If you’re considering applying for a payday loan, be sure to speak with your lender about the terms of your loan so that you can make the right decision and choose a loan that works for you.