What is A Payday Loan?
Have you recently come across the term payday loan and don’t know exactly what it means? Don’t feel bad ifyou aren’t sure, as there have been many misconceptions surrounding payday loans throughout history.
The concept is quite simple when you get down to the facts. Basically, a pay day loan is a cash advance against your next paycheck. For instance, say you are waiting for your bi-monthly paycheck of $2000 and you are short on cash due to unexpected expenses. For a fee, you can borrow $300 in minutes. Then, once your next paycheck is put into your account, the payday lender pulls the $300 (plus fee) out of your bank electronically.
This means you are required to make sure you have enough cash in your account to cover the amount due. If for any reason you are unable to pay the full amount back, you will then be responsible for paying extra fees and/or a high interest rate until the loan is paid back in full.
The main difference between a traditional bank loan and a payday loan Huntington Beach is this: A bank loan depends on your credit score and other factors, while a payday loan is leveraging your incoming paycheck as a guarantee of loan repayment.
In order to be approved for a payday cash advance, you must do the following:
- Prove that you have a regular job via your two most recent paystubs.
- Prove that you have a bank account and regular funds being placed within the account. You can do this by providing your most recent bank statement.
- Provide a personal check.
- Provide your government ID.
Once you are approved, you will be granted instant cash. The process often takes much less time than a traditional bank loan. The key to your success is to pay off the loan as promised, and after payment is made you will be in great shape.
To find a payday lender that you can trust, it is recommended that you seek out online reviews and avoid those with poor customer ratings.
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