Category Archives: what if you’re skint

How to Get a Payday Loan – Three Basic Requirements

Borrowing cash is easy if you know how to get payday loans. Three basic requirements must be met and most people who apply will be accepted the first time they apply. To get a payday loan requires just a few qualifications.

  1. Income – you must have some type of regular, verifiable income. This can be from a job, government income, or self employment. Most lenders want to see a paystub or some other verification statement of regular income.
  2. Bank Account – most lenders require a bank account that will accept direct deposits. This is because the loans are backed up only by a check or automatic deposit permission form. They are unsecured loans, meaning there is no need to put up tangible collateral to get a payday loan. If the borrower does not repay their loan on time, the lender will process the check or ACH withdrawal. At that point the transaction becomes a checking issue rather than an unsecured loan. Any bounced checks will result in bank fees, bounced check fees and collection efforts.
  3. Personal Identification – a driver’s license is preferred, or other government issued identification.

These are the three basic requirements for getting a payday loan. Go to a local neighborhood cash advance store or an online payday loan website to get one of these loans. If you are at a store location, you will walk out with cash in hand. Online websites operate electronically. Your loan and repayment will be done automatically but not instantly. It may take minutes to a day to get a loan deposited. Repayments are done on the due date. To repay at a store location, simply go in and give them cash and pick up your uncashed check.

Other requirements may include providing several personal references. Your personal phone and address is also required by all lenders. Payday loans are convenient and can be used for any purpose. Most persons use them for emergency cash needs. Interest rates are very high but the loan term is very short. On a $100 loan, a normal fee runs about $15 to $25 dollars for a one to four weeks term. Loan limits and due dates are determined by a person’s income level and frequency of pay dates.

Getting a payday loan is easy as long as a person meets the three basic requirements. Many of people use payday loans every day around the globe. There are a few government restrictions that may apply; check with your lender regarding any limitations. Know how to get a payday loan. Three basic requirements are simple and being prepared to meet them makes getting your payday loan easier.

One important word of caution regarding payday loans. Although they are very easy for almost anyone to obtain, it must be emphasized that these types of short term loans do not fall under government regulations with regard to interest rates. These companies can charge whatever they wish, and most begin at an annual APR rate equal to just under 400%. This can be $15 to $25 per $100 every loan period, and it can trap a borrower quickly. Like anything else, buyer beware. Use these only in an emergency, and pay off immediately without reborrowing. If your income is short, find more income and do not get trapped in recycling payday loans.

6 Negative Credit Status’s

Making mistakes when it comes to your credit is a lesson that many people learn the hard way. Constant phone calls, mail, and threats can make a tough financial situation worse. Either how well or how poorly you manage your debts and finances are available to creditors to see when you apply for credit, such as for a retail store card, or even an auto or home loan. With that being said if it is not too late for you, it is best to prevent any of the 6 worse status’s to show up on your credit report consisting of:

Charge-offs

When you miss payments for several months (exact time determined by lender) they may choose to report your account as a charge-off, stating the debts unselective. The creditor in returns writes the account off, reports it to the credit bureau, and it remains on your credit report for 7 years. Simply because a debt has been charged-off it does not mean that you are not responsible for it. If you pay the debt off the status on your credit report will appear as either charged-off paid or charged-of settled.

Collection status

Some creditors will not choose to charge off your debt to them, they will sometimes hire a third-party collection agency to go after you to collect the debt. Some collection agencies will use whatever tactics they feel necessary to collect a debt. You do have rights in this situation and make sure that you become informed so you know what they can and cannot do.

Foreclosure

A foreclosure is when an individual defaults on a mortgage or home loan. The lender will repossess the home and auction if off to recover the amount of the mortgage. Foreclosures can severely damage a person’s credit, foreclosures remain on ones credit for seven years.

Bankruptcy

When an individual files bankruptcy it allows them to removed of liability for some of their debts, it depends on the type of bankruptcy filed. Bankruptcy information will continue to reflect on your credit report for 7 to 10 years after it is filed, but oftentimes a person can begin to rebuild a positive credit history after debts are discharged.

Judgments or lawsuits

Creditors may choose to take you to court and sue for a debt, if other forms of collection has failed. If they can prove the debt or lawsuit against you, a judgment will be entered against you. Judgments remain on your credit report for 7 years, even after the debt has been satisfied.

Tax liens

A tax lien is pursued when taxes are not paid on a home or piece of property. The government can then seize the property and auction it off for the unpaid taxes. If an individuals home is foreclosed on due to a tax lien, they are still responsible for the mortgage on the home. Unpaid tax liens remain on a credit report for 15 years, paid tax liens remain for 10 years.

As you can see each of these status’s can have a crucial impact on your credit report and ability to progress in your future financially, even after the debts are paid. It is best to avoid these circumstances at all cost, but if you do find yourself in a serious financial bind there options available to you to repair your financial outlook.