How to Get Payday Loans Near Me?

A small amount of loans that can be acquired easily at a high-cost are covered under the payday loans. These are considered as the quick-fix solution for immediate short-term cash contingencies. These loans are the best choice when you immediately need cash. Somehow, getting rid of payday loans is not as easy as procuring it from lenders.

If you want to know how to get cash loans near me, here are some of the truths about the payday loans which you need to know first:

What are payday loans?

Payday loans are high-cost short-term loans, which are generally below $500. One can get these loans online or from payday lenders, depending on the availability. Most of the states have set a limit of $500 for payday loans, although it can be increased or decreased as well.

Most of the payday loans are repaid in single repayment on the next payday. These can also be repaid when the borrower receives the income from sources like social security or pension. 

In most of the loans, the due date of repayment varies from two weeks to four weeks. Even a specific due date can be defined in the payday loan agreement. A post-dated cheque of the full amount (including loan fee) is generally issued by the borrower to repay the payday loan. 

There is an option to authorize the lender to debit the full amount, including fees electronically. From credit union, bank, or prepaid card account. If you do not repay the loan before the due day, the lender is authorized to debit the amount electronically on or after the due date.

The payday lender does not consider your other financial commitment concerning your repaying capacity.

Hence, most of the payday loans are structured to be repaid in one lump-sum payment. However, in some instances, the lender accepts only the due fees, and the loan is roll-over to the next due date under some of the state laws. 

What is the cost of payday loans?

The maximum amount of fees under many states is restricted between $ 10 and $ 30 per borrowing of $100. An APR of 400 percent is applicable for a $100 loan with a fee of $15, which is hefty as compared to the credit cards where APR varied between 12% and 30%. Hence, in most of the states, there is a cap to the maximum amount, fee, and duration of payday loans. Here you can check for 1st Class Loans.

How to get payday loans near me? – Requirements

These loans are designed to be quick and easy. So the qualification requirements for these loans are limited. The loans are specially devised to help out the borrower with some fast cash until their next paycheck, hence the named ‘payday loan.’

Some of the necessary qualifications which every lender expect from a borrower are as follows:

• The borrower must be aged between 18 years to 65 years
• The borrower should have an active checking account
• The borrower must possess the active identification
• The borrower must be able to provide proof of an active source of income
• The borrower is willing to write the post-dated cheque or automatic electronic transfer authorization for the full amount, including the fees for the specified maturity date
• If the borrower meets all the qualifications above, the loan processing could be as quick as within 15 minutes of application

What are the causes of payday loan rejections?

Although getting a payday loan is quick and easy. However, there are instances where the payday loan applications are rejected on the following grounds:

• You are not able to comply with minimum income requirements
• You are not working at the federal minimum wage 
• You are self-employed with no assured income
• You are self-employed and not able to provide a certain number of bank statements
• You do not have an active bank account
• You have a hefty outstanding loan from other lenders, and your income statement does not qualify you for repayments of both loans
• Bankruptcy in the last two years reflecting your financial instability
• You have recently joined your current employer (less than three months), specific lenders may reject the application

Why should you avoid the payday loans?

The financial pitfall associated with payday borrowing, which makes it tricky:

Payday loans are financial quicksand. Most of the borrowers are unable to repay the payday loan on its due date, along with the hefty fees associated with it. Most of these borrowers are already in a financial crunch and require to take another loan to repay the previous due loan. It sinks them into deeper debt, and the circle of borrowing and repayment becomes vicious, along with the rising borrowing fee.

The cost associated with the payday loan is very high. While you can get credit using a credit card at the APR between 28% and 36%, the APR for a payday loan goes as high as 400%. It seems to be a quick source of financing, but the associated cost sinks you into deeper debt.

Payday lender often looks for the access of your bank account. A post-dated cheque will result in hefty overdraft charges if your bank account has no funds on the due date. The lenders make repeated attempts to recover the money from your bank account, which may lead to multiple overdrafts. 

Ruthless Debt collectors may disturb your mental peace. If you are not able to repay your payday loan on time, payday debt collectors will adopt the tactics. They may call you frequently, including a late-night call to recover their debts.

A payday loan is quick to obtain with no right to reverse. As these loans can be purchased as early as in 15 minutes, you don’t have enough time to change your decisions. With other loans, paperwork and background check is significantly involved, taking more time.

If you can manage your debt and requires quick cash inflow, payday loans are the best alternative to consider. No doubt, the hassle-free procedure of obtaining a payday loan makes it a preferred choice in the event of an emergency.