If you are considering taking out your first personal loan, the fast turnaround of a payday loan is probably attractive. You want the money fast, and will be able to return the money fast. You are the perfect candidate for this type of loan! The only problem is, you aren't quite sure how these loans work, or what the application process may be like. This quick guide will give you a good introduction so you know exactly what to expect.
Step One: Preparation
The payday loan process starts with preparing yourself, and making sure you are suitable for taking out a personal loan. Question your reasons for taking out the loan, and make sure they are worth paying the high interest rates associated with this type of loan. Make sure you have a clear plan for repaying the loan, even if it has to be done with your very next paycheck.
Step Two: Research
Start doing some research into various payday loan services. Find those that are reputable, and which have the best lending rates. Narrow it down to one or two lending services that you would feel comfortable working with. Consider both lenders in your local community, and online lenders. Look online for reviews from other consumers to help find the best lenders. Keep the speed of delivery for the money in mind as well, since some personal loan services may be faster than others.
Step Three: Application
The application process for a payday loan is far less painful than the application process with a bank or credit union. You do not have to go through a credit check, or worry about reports to your credit. Very little documentation is needed, though some personal loan companies will require more proof of income than others. During the research phase you will learn all of the details about the application process for specific lenders, so you can find the one that works best with your time frame and available documentation. The application process is typically completed within twenty-four hours, even if you apply online.
Step Four: Money Received
Once you are approved for your loan and have signed off on the loan agreement, you will receive the money right away. If you go with an online payday loan service, you will typically have the money deposited directly into your bank account. If you go to a local service, you may be given cash, a check, or an automatic deposit.
Step Five: Money Returned
The last step in the payday loan process is to repay the money as agreed when you took out your personal loan. If you spent enough time on step one and properly planned out how you will repay your loan, then this final step should be easy. You pay the loan back plus the interest, and the deal is completed. Next time you need a personal loan, this payday loan service will certainly be waiting to help you out again.
The part of this process that many people fear is the application. It is far less intrusive than other personal loan applications, so relax! You will get through it quickly.