The many names of cash loans
Cash advance loans go by many names. I’ve heard them called “cash advance loans,” obviously “payday loans,” “quick cash loans,” “no fax loans,” and “wire transfer loans.” I’m sure there are more names for them, but you get the point.
Loans like this have become increasingly popular as they are quick and easy and fill a need that banks cannot. When used properly, payday loans can be a very valuable resource!
The key phrase is “when used appropriately.” Let’s first see how you would get a payday loan.
If you are not familiar with these loans, read on. A person needs money for any reason; it could be to fix your car, pay medical bills, or a bill that is due before payday. Payday loans are great when urgent things come up, but they can also be great when you know you have money but are too impatient to wait, or don’t want to pass up an opportunity while you’re waiting for it.
So this person finds a lender after some research and deliberation. Do you need to do your research before getting a payday loan? No.
If you don’t want this loan to come back and bite you, it’s a good idea to do a little research. You may want to research your state’s laws regarding payday loans so you know you’re not being overcharged or exceeding maximum loan amount guidelines.
The lender is chosen, hooray! Our borrower then applies with said lender and begins the application process. First, our girl opens the door for her lender (either she picks up the phone or fills out the online application) and tells them how much she wants. They review the cost of obtaining said loan, and then she completes the actual application. It’s good to talk to her lender and ask what they’re offering right now.
If you make it look like you’re just buying, you may get a better rate. And if you remain a loyal customer, some lenders reward you with good rates on future loans. The application simply needs our applicants’ name and personally identifiable information. The lender will ask you to see proof of employment and proof of bank account.
Every lender is different, but most require proof of employment for at least three months. You must be a United States citizen and 18 years of age or older to apply. You and your lender will decide how long your term is. Most terms, and the smartest ones, are only a couple of weeks. Because after all, what is this loan? A payday loan. Pay it off in your next paycheck or you’ll find yourself paying a lot more in fees and compound interest.
Next, you review your contract, which you should have read and noted any late fees, length of loan policies, and your interest rate that you discussed with your lender. Make sure you pay close attention to those details because it’s the little things that come back to haunt you if you’re not ready for them. Once this is done, sign your contract.
The next to last thing someone would do is authorize a money order, or post-dated check, for the lender to debit your account to pay off your loan. The ultimate is just enjoying the money when it comes!
Remember, as with any loan, these are taken very seriously and you are still required to pay it back plus any fees and interest. The best way to make sure you can repay your loan is to have a plan for how you’re going to repay it, even before you apply.