How Can Pay Day Loans Help?

On August 2, 2012 · 0 Comments

Many people today are just a paycheck away from potential financial disaster. Budgets are tight and sometimes the earnings just don’t stretch until the next payroll. Pay day loans can help. They can help you get by when a last minute expense or emergency arises where you need extra cash and need it right away.

One of the benefits of pay day loans is they can help keep the checkbook balanced. Writing a check for an unexpected car repair, a medical bill, or another unplanned expense means accumulating overdraft fees from the bank. By the time the next pay comes much of it will be removed to cover bank fees and overdrafts. A quick loan to pay for unforeseen emergencies can prevent you from accumulating overdraft fees from the bank.

Short term loans are easy to apply for and convenient. There are usually two ways to apply. Visit a store that specializes in pay day loans or apply online. Only an active checking account, some form of identification, and pay stubs are needed to apply for such funding. Usually the applicant will receive an answer immediately or within several minutes if applying online. Companies that offer such financing generally do not perform credit checks so as long as you meet the basic criteria you are likely to be approved.

A quick loan to cover emergency expenses can mean the difference between getting to work the rest of the week or putting food on the table. If you find yourself short occasionally this type of funding can help you get by and can help you get to work. Honest, hard working people sometimes need a little extra help to get through the week. Pay day loans can help. Though companies that offer such funding charge a fee it is far better than going without something that is needed or not being able to get to work.

Payday lenders usually have online payday loans applications which makes applying convenient and less costly. If your car needs repaired and you cannot visit a store location or simply do not want to spend the extra money on gas applying online may be your best option. In most instances approval occurs within minutes and funds are deposited into the checking account within 24 hours or less. Those who work and cannot visit a local lender may also find online applications the easiest way to obtain pay day loans.

Short term funding is not designed for large expenses. It is designed for small emergencies and financial needs that may occur occasionally, which require small amounts of cash. Usually lenders are willing to loan a third or half of your regular pay check. It is always a good idea to only take as much as you will absolutely need to get by, to reduce the fees associated with such funding. This makes it easier to take care of other responsibilities with the next payroll check and keeps you from drowning in debt or continuing to rely on such funding sources.

There are some conditions for obtaining pay day loans. Most funding sources require regular employment rather than on a contractor basis. They may ask for a bank statement and a checking account in good status with no overdrafts. Pay stubs or proof of pay for the past 30 days is usually needed as well.

The lender will use your pay stubs to determine what you are eligible for in a short term loan. You will then either supply the company with a check to remove funds from your checking account or will be required to buy back your loan with interest on the due date, which is usually a day or two after your next pay. Pay day loans can be a great help in times of crisis but should be taken out only if absolutely necessary.

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