Tuesday, January 15, 2008

How to Get a Personal Payday Loan


To make ends meet during those times when you're left short until your next payday, you can get a personal loan from one of the many lenders in your city or online. They generally offer small loans--usually $1,000 or less--at relatively high interest, which will come due on your next payday.


Difficulty: Moderately Easy

Get a Personal Payday Loan

Things You'll Need

  • Checking or savings account (needed for online loans)
  • Personal identification and proof of address (needed for in-person payday loans)
  • Earnings statement
  • Proof of employment



Step One

Find a lender. Businesses that cash checks without holds and charge a commission for the service usually offer payday loans. Call the various lenders in your city, comparing interest rates, fees and any penalties that apply to defaults or late payments.

Step Two

Head online to broaden your options. Dozens and dozens of payday loan companies have set up shop on the Internet, featuring fast approval and quick, direct deposits into your regular checking or savings account. However, it's a good practice not to be in a rush when selecting a payday loan company, as you're advised to check them out with the Better Business Bureau or your Attorney General's office before borrowing money from them.

Step Three

Gather the information you need to apply for the loan. Some online lenders may require you to fax in a copy of your pay stubs or earnings statements, while others may not (and will charge a higher interest rate for the convenience). Virtually any lender you'll deal with in person will want photo identification and proof of address, in addition to a pay stub.

Step Four

Undergo the requisite credit check when you apply for a payday loan. There might be an additional fee to cover the cost of this check, which will most likely be applied to the total loan amount.

Step Five

Make sure you understand the repayment terms. Generally, you are expected to repay the full amount of the loan, plus interest, on your next payday. To avoid any penalties as the result of miscommunication or misunderstandings, read the fine print on any loan agreement you sign.

Step Six

Repay the loan in its entirety when you receive your next paycheck. Should you ever need to get another payday personal loan, it is a good idea to deal with a company where you've already paid one back without incident. You might be able to get a lower interest rate or a higher loan amount the next time.

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