A payday loan is a short-term, high-interest loan that you can use to cover your cash requirements between periods of salary payment and agree to repay once you receive your next paycheck. You can borrow a small amount, cover the costs that need immediate attention, and pay back the loan in a few weeks. This may sound like a good idea in theory, but it is important to bear in mind that they are not that cut-and-dried. Payday loans come with very high fees that you should be aware of before you consider applying for one.
What to Use Payday Loans For
Typically, people use payday loans for non-negotiable daily expenses like groceries, utilities, and rent. Because borrowing these loans comes at a high cost, you should not consider them for unnecessary or impulse purchases that are possible to hold off on, purchase at a later date, and save up for.
Payday loans should be considered as a last-resort option. If possible, it is a much better idea to opt for alternative payment options that come at a lower cost, like asking a family member or friend for a loan or requesting your employer for a payroll advance. Before you consider applying for a payday loan in california, you should take the time to research different lenders in your area and pick one with a reputation for being honest and reliable.
How to Apply for a Payday Loan
You can usually apply for a payday loan with a storefront payday lender or online. It is likely that you will be asked to provide personally identifying information and some of your financial information, including your bank account and routing number so that the lender can deposit the funds into your account.
Your payday lender will ask you to provide some form of identification and proof of income. The latter helps your lender determine your ability to repay the loan and is used as an alternative to a hard credit inquiry. In some instances, your lender may also ask you to provide a signed check or a letter that authorizes them to withdraw the funds from your bank account on the agreed-upon date for repayment. Although payday loans can be extremely helpful in times of emergency or when you need extra cash between salary payment dates, it is best to apply for one only after you are unable to find another option. Apply for a payday loan in California only from a reputable lender so that you avoid problems when it is time to pay back the loan.