Of course quick money is a draw when you compare payday loan lenders, but you have to make sure you have your paperwork together before you apply. You need certain documentation before you will be granted a payday loan. This documentation helps the bank or lending institution to figure out if you qualify for a loan. To get a payday loan, you will need some form of ID, (driver’s license, social security card, birth certificate, etc.), proof of income (pay stubs, bank statement), and a bank account that your re-payments can automatically be drafted from.
Don’t believe everything you read online. There are some reputable reviews out there regarding payday loans, but a lot of it is propaganda written by media professionals. If you read a good review, or a bad review, make sure you keep reading. Dedicate at least 3 or 4 days to researching loans, before you sign up.
Don’t apply to more than 3 different companies for a payday loan. Each company that you apply to will pull your credit report. For each credit report pull, you suffer a penalty called an inquiry. You will lose points in your credit score every time an inquiry is made on your credit report. It’s best to just apply to 3 payday loans in a 12 month time period, if you can help it.
If you are rejected for your payday loan, then you are not ready to take out credit. Look inside yourself, why do you want this loan? Payday loans in particular should not be played with. They require instant payback – automatically drawn from your bank account – and command a very high interest rate. Misusing payday loans is a bad idea, and can damage your credit for many years to come. Make sure you are getting your payday loan for good reasons.
Plan to pay the loan back immediately. A payday loan is meant to be paid back right away. If you cannot do this, then you shouldn’t take it out. It can be tempting, but not paying the loan back on time will ruin your credit, and make it impossible for you to get a payday loan in the future until you fix your credit.
Don’t take out a payday loan without reading the small print. Make sure you know the terms of your loan before you sign on the dotted line. You may not realize that if you are one day late with your loan, your interest rate doubles. You want to make sure you know when your loan is due, and whether you can really afford the loan.
Try to find the best interest rate. There are options out there. Though there are a lot of payday loans out there – and most of the interest rates are rather high – try to find the best one that you can. If you have a decent credit rating, this is the best choice you can make. If your score is above 700, make sure that you shop around before you sign.
Payday loan applications are a great way for thieves to get your personal information; so make sure a company is legit before inputting your social security number. Consider Quick Quid and Wage Day Advance for your payday loan needs.