6 things about online payday loans for bad credit

Online Payday LoansOnline Payday Loans. There has been a time in every person’s life when they have found themselves

online payday loans

6 things about online payday loans for bad credit

in a position where they need money to get by. There are many reasons that you may have encountered throughout your life that have created a need for you to have more money in order to pay your bills and cover any emergency expenses that pop up in life. Losing a job is one of the most common life occurrences that cause people to need money in order to survive until they can secure employment elsewhere. Medical emergencies are also a big part of the reason that people go looking for a payday loans. Getting payday loans online seems like the answer to most of our financial troubles but in reality it’s only a quick fix to an emergency situation and if you aren’t responsible with your money you can easily find yourself stuck on the endless cycle of payday loans with no way out and then you will need to find debt relief. Debt relief for online payday loans is no laughing matter and it’s something that you hope you never have to find. You may have to get a second job in order to see any type of immediate payday loan debt relief. Let’s look at the top six things you should know about payday loans before you sign on the dotted line.

Interest Rates Are Extremely High

Payday loans aren’t like your traditional loan that you would get at a bank. Payday loans make their money off of the interest rates, which are extremely high, and you can expect to have an interest rate anywhere from 391% to 680% and sometimes they can even go higher than that. Keep in mind that these interest rate numbers are only if you pay the full amount of the loan back in two weeks. The longer you take to pay the loan back the more you will pay in interest. To put these numbers in perspective you can expect to pay about thirty dollars per one hundred dollars you borrow every two weeks. For example, if you get a $200 dollar payday loan, then every two weeks you will pay a $60.00 fee just for the interest and the principal will not decrease.

The Loan Company Will Have Their Hand in Your Checking Account

One of the requirements to get approved for a payday loan is that you have an active open checking account. Before the payday loan company will release any funds you will have to give them your banking account information and this is the account they will deposit your funds into and the account they will deduct your payments from. This means that no matter if you have the money or not they are going to debit your account and if the payment is rejected for insufficient funds then you will have the thirty dollar return fee from your bank and the payday loan company is still going to continue to debit the account until they get their money.

You Must Have Verifiable Income

Every lending institution, whether it’s a bank or a payday loan company is going to require that you have income via a steady job. They will verify this information and may even require that you send them your current paycheck stubs because they need to make sure that you have a way to repay the money that they are about to lend you. Be prepared for them to possibly call your employer too. They typically want to see at least $400 a week in income and they will want you to have had the job for at least six months.

Know Your Credit

A payday loan company will still approve you for a payday loan even if you have bad credit but a bad credit score will make your interest rate increase significantly. If you have a bad credit score then you will see an interest rate in the neighborhood of eight to nine hundred percent. This is extremely high and if you are planning to borrow more than three hundred dollars it could make the interest so high on the loan that you won’t be able to pay it back.

Stiff Penalties for Non Repayment

Some people may think that they will just get the payday loan and then close their bank account and open a new one to avoid repaying the loan. This is a bad idea because the payday loan company will take you to small claims court if you fail to repay the loan. This could make your credit score go from bad to worse in a matter of minutes. Furthermore, if you fail to repay a payday loan not only will you have a judgement against you, it will be near to impossible for you to ever get a payday loan again. Payday loan relief is available but you don’t want to let it get to that point.

Use Payday Loans Responsibly

The thing to always remember when getting payday loans is that they are a short term fix to your money problem. You can’t rely on payday loans in order to get by in life and you will eventually have to be more responsible with your money so that you won’t need a payday loan with life’s little emergencies pop up. Proper planning and saving is the best way for you to be able to handle any emergency or life situation that comes your way without having to resort to payday loans.
If you find yourself in the vicious cycle of payday loans then you might want to seek out payday loan relief. Payday loan relief will help you get your finances back on track and on the road to saving money. What is payday loan relief? Payday loan relief is when you consolidate payday loans into one and make one payment instead of several. How do you qualify for payday loan relief? You will have to apply for payday loan relief with the companies that offer it and based on multiple factors they will approve you or deny you. Is payday loan relief legal? Yes, it’s one hundred percent legal and it’s a good way to get you out of debt with payday loans. Can I apply online for payday loan relief? Yes, most companies offer portals for you to log into and submit your application. How long does it take for you to get approved for payday loan relief? The entire process can take as little as just a couple of days or it could take a couple of week. The speed of the process all depends on the payday relief company you apply with.