Payday Loan Company

I had always heard about payday loan companies.  I was always wondering what they were all about.  It wasn’t until I actually needed one that I went on the internet and did some research.  I didn’t want to jump into a loan without reading all I could about them.  I did n0t want to take the loan and then get charged several hidden fees. I wanted to learn all that I could about the loan companies and how they did business.

What is a Payday Loan Company?

A payday loan company, is a loan company who lends short term loans.  These loans are only meant to tide you over until your next paycheck.  Hence the title payday loan company.

Where can I Find a Payday Loan Company?

The best place to find a payday loan company is on the internet.  If you simply google the words payday loans, you will get several different choices of loans.

How Do I Choose the Best Payday Loan Company for me?

It takes a little research to find the best payday loan company.  Most of them are basically the same but some have slightly different terms.  To be eligible for a payday loan, you must make a certain amount of money per month.  Some companies are $800 per month and some companies require $1000 per month.  If you do not make too much money, your best bet to choose the payday loan company who requires the least amount of money.  It is also a smart idea to check the different payday loan companies to see who has the lowest loan fee.  The payday loan companies require that a borrower repay the loan as well as a loan fee.  The loan fee depends on how much you borrowed.  Some companies are less than others. Checking each company could be the best idea for you.

Do the Payday Loan Companies Have any Requirements?

The payday loan companies do have a few requirements.  As stated above, the payday loan companies require that you make a minimum amount of money per month.  Some payday loan companies ask that you make at least $800 per month and some other require that you make $1000 per month.  There is a requirement on the type of income you receive as well.  Wages from a job, Social Security, child support, and temporary disability insurance checks.  There are also a few different types of income that are not accepted.  Social Security checks that are in your child’s name or another person’s name are not accepted.  Also, it is required that your income, whichever it may be, is direct deposited into your account when you are paid.  The payday loan companies require this because they must be sure that you will be able to repay the money.  Another requirement made by the payday loan company is that the borrower have a checking account that has been open for at least ninety days.  The borrower will be required to fax over a copy of the most recent bank statement and a voided check.

How Do I Apply For the Payday Loan?

You can apply for the payday loan online at whichever site that you chose.  You will fill in the information and follow the prompts.  You will be given a fax number and will be required to fax a copy of your bank statement along with a voided check.

How Do I Get the Money?

The money will be electronically deposited into your bank account usually the next day.  If you submit your loan application and fax over the necessary papers by 7:00pm EST or 4:00pm PST you will be eligible to receive the money the next day.  If it is later than the above mentioned times, it will take two days.

How Do I Repay the Payday Loan?

The borrower is not required to do anything to repay the loan except make sure that the money is in the bank when the lender tries to electronically withdraw the money.  If the money is not there, you will be automatically given an extension.  Exactly one week later, the lender will attempt to withdraw the money again. 

This time, you will be required to pay the loan fee twice.  This will continue for three weeks if the money is not put in the account in the full amount.  The lender will not take a partial payment.  If after three weeks, you still have not put the money in the bank, you will be required to pay a penalty.  It will cost you $50 for loans up to $599, and $100 for loans of $600 and up.  You will also have to pay the four loan payments as well.  The first loan payment, plus the three extras for the three weeks worth of extensions.  Those fees plus the penalty can begin getting very costly.

What are the Risks?

There are no risks when doing business with payday loan companies.  There are no tricks and no hidden charges.  As long as you pay on time, all you will be required to repay is the loan and the loan fee.