Learn About Payday Loans
Before committing to this type of loan, it is crucial that you know all about them. Thousands of people use them successfully each month but there are many who end up having vary bad experiences with them. They get a quick 500 dollar loan and find that they can not pay it back and get stuck in a debt cycle. Do not let this happen to you. Take a minute and learn about the ins and outs of these loans.
5 Good Things About $500 Payday Loans
Let’s be positive for a bit and talk about all of the good things about payday loans. There must be a lot of good about them if people continue to use them. After all, most people who take out this type of loan will get at least one more within a year.
- These loans get you money in a hurry.
This is the biggest advantage of this type of loan. It can get you the money that you need quickly. Most loans will fund on the next business day and the money will go straight into your bank account. This means that you will be able to use it right away to pay your bills. Electronic deposits mean that you will not have to wait days for a check to clear.
- The application is extremely short.
No filling out pages of paperwork. In fact, you may not have any paperwork to do at all. Most loans are entirely electronic with the quote forms being online and the ability to sign electronically. The questions asked of you are also very brief. You will enter your name, your address, your employer or source of income, your bank account number and just a few more odds and ends. In only a minute or two, you will be done and can get your decision.
- Decisions on these loans are fast.
This brings me to my next positive, the fact that decisions are fast. Lenders will approve you in a matter of minutes. Knowing that you have your money problems solved and will soon receive your $500 can be very relieving. It can lower your stress levels and allow you to move on to other things in your life.
- Qualifying is easy even with poor credit.
Most lenders are just trying to see if you have the ability to pay back the loan. So, if you can show that you have a source of income and have never defaulted on one of these loans, your approval odds will be very good. Most people who take out payday loans for $500 or even more do not have perfect credit, quite the opposite actually.
- You can apply anywhere and at any time.
These days, you can apply for a payday loan at any time and any place. Just pull up the quote form on your computer or smart phone and enter your information. No need to drive to one of those cash stores and take a lot of time out of your day.
5 Bad Things About Payday Loans
I’m not going to try to paint these loans as being perfect. There are things about them that can make them less than ideal and if you have other options, you might consider them as well. Here is what you should know.
- There are high loan fees involved.
This is the chief detractor to a payday loan. Your lender will usually charge you a set fee per $100 borrowed instead of an interest rate. The fees can be high and you will need to decide if the cost is worth it. Fees could be anywhere from $15 to $25 per hundred dollars borrowed. Every lender is different. Before signing your loan contract add up the cost of not having the loan and then compare it to the fees that the loan will cost you.
- You have to pay back the loan fast.
It is called a payday loan because it is meant to be repaid on your next payday. This means that you will probably have less than 14 days to pay it back. You need to decide if you will have the $500 plus fees available on your next paycheck. Is paying back the loan going to cause you to need to take out another one immediately? If so, you need to look at some other financing options so you do not get trapped in a loan cycle.
- The money is limited.
The money that you need is limited. Some states do not allow payday loans and others regulate the amount that you can borrow. If you just need $500, chances are you are in good shape but this is not the case in all states.
- They will not improve your credit.
While payday loan providers may report a defaulted loan, they will not report one paid or in good standing. With conventional financing, a loan account that is paid on time has the ability to improve your credit rating. This is just not the case with payday loans.
- You have to give the lender access to your account.
Most lenders will require you to authorize electronic transactions from your bank account. They use this to put the money in your account fast which is a positive but there is a downside. They will also pull the money out automatically on the due date, whether you like it or not. Make sure that the money is there to avoid any potential overdraft fees. If you know that you will be unable to make the payment, contact your lender ASAP.
The Payday Loan Process
Okay, so you have decided to go with a payday loan. If you have never taken one out, you might not know what to expect. Here is the rundown for you, step by step.
Fill Out Your Loan Quote
The first step is to fill out the quote form. We provide one at the top of the page for your convenience and they all ask the same things, more or less. Make sure that you enter your information in correctly as to not slow down the process with corrections . First, enter the amount that you are requesting, $500 in this instance. Next, you will enter your contact information being sure to double check your address, phone number and email. Then comes your financial information such as your source of income and banking information. Generally, that is about it but your lender might ask you for a few more small details. Enter all your information and then hit submit.
Get Your $500 Loan Offer
After you submit your information, it will take just a minute or two to get your answer in most cases. Your lender will send you all of the details of your loan including the total cost of the loan. Review your information and see if it fits your financial situation. Think carefully about what will happen when the loan comes due. Is it going to wipe out your whole paycheck or will you be able to get by?
Accept Your Loan
If you like what you see, you can now accept your loan and your lender will start the process of getting you your money. Most of the time, it will be in your account the very next business day. Since it will be deposited electronically, you will have immediate access to it. Use the money to take care of your financial obligations or emergency.
Repay Your Loan Next Payday
On your next payday, your lender will withdraw the loan principal and fees from your account. At this time, your loan process will be over and you will have met your obligation. Hopefully, the loan will have solved your financial emergency and you can move on. If you find that you can not pay back the loan, try to contact your lender before the electronic withdrawal hits your account. You may have options from your lender or even state mandated solutions.
Payday loans could be a viable option for you. If this is what you need, this article can be of assistance. See your options.