Published on August 2nd, 2015 | by richard0
Understanding the Payday Loan Process
Although payday loans receive a lot of bad press, they can be useful for many people. The issue is with ensuring that you can pay back a loan and that you know how much money you will owe. If you’re confident that you can repay a loan and make the payments on time, a payday loan could be a good option for you. When you need to pay for something quickly but you won’t have the money until later, they can really help you out. But the process might be confusing and daunting for some people. If you’re not sure where to start, try this quick guide to taking out a payday loan.
Before you choose a loan provider and make an application, you need to compare them. Not all lenders are equal, and some are more unscrupulous than others. You can use comparison websites to compare a lot of your options, but they won’t have all of them. Some lenders aren’t on any of the comparison sites, so be sure to look for others. Research individual lenders and watch out for those such as Sunny loans that might have received warning in the past. Go over the lender’s website, as well as reading about them elsewhere.
Check Your Eligibility
Before you apply for a loan, you need to verify that your chosen lender will give you one. Of course, nothing is guaranteed but you can look at their basic criteria. Some of the things they might specify include being at least 18 years old and in employment. You will likely have to pass a credit check too, which will help them determine whether you can pay back the loan.
Complete an Application
If you think you’ll be eligible for a loan, it’s time to fill out an application. Most payday lenders are online, so you can at least begin the process on the internet. However, you can also find lenders on the high street. You might prefer this option if you want to talk to someone before applying. But even if you apply online, you can contact the lender before submitting an application.
Talk to an Advisor
You can start your application online, but you’ll need to speak to a human being to complete it. The lender will need to call at least one of the phone numbers you provided to check your identity. They can discuss the loan with you to help you finish applying and be on your way to securing a loan.
Receive Your Loan – and Start Paying it Back
Hopefully, what comes next is receiving a loan. It’s important to be aware of when and how you need to make your repayments. You could have several options for paying it back, perhaps through internet banking or bank transfer. Make sure you’re aware of any fees you could be subject to if you miss a payment.
Payday loans can be useful but think carefully before you apply for one. Research the company thoroughly to help you make a decision about who to borrow from.