February 23, 2024

Business Bib

Business & Finance Blog

What You Need to Consider for Getting Your Payday Loan Approved

2 min read

If you are in dire need of money then many people may suggest you to apply for payday loan, as it is very easily available loan. However, you need to understand that payday loan attracts very high amount of interest and in addition to that you will also need to dole out processing charges too. If you look at it in totality then payday loan can be very expensive, particularly if you fail to pay back well in time.

Therefore, whenever you are in dire need of getting a payday loan with bad credit then first of all look for following few options:

  • Call any of your close friend or relative and request if they can bail out by lending the required money.
  • Contact any of your local credit union who are quite sympathetic and offers loan at much lower interest than payday loans. Banks usually don’t entertain if your credit rating is poor.

If there is no other option available then you should use payday loans to avoid withdrawing extra funds. While availing payday loan you must consider the following.

  • Pay day loans are for obtaining loan for the amount between $300 to $1,000 however you must try to obtain minimum possible loan so that you can clear the loan after you receive your next pay check.
  • You must understand that to get a loan of $400 the lender may charge you $100 as processing fee.
  • If you avail high amount then large amount of your next pay goes in the form of loan payment and you may end up going for another loan to meet your monthly expense. That is where you enter into vicious circle.

Therefore, you have to understand that unless you exercise a very strict financial discipline, there is every chance that you may enter into a debt trap.

While you are applying for payday loan, you must check that you meet all the eligibility criteria and also ensure that you can comfortably clear the loan as per the agreed terms. You must have the documents to prove the following:

  • Your citizen certificate and age proof that you are adult
  • Your contact number and address
  • Your ID number provided by any recognized authority
  • Proof of your employment
  • Your salary slips which indicates your monthly income
  • Proof of having your bank account which must be running for at least 90 days or more.
  • You must provide your email address so that you can be contacted through email in future.