When an emergency happens and you need an extra fast cash to last you through to your next paycheck, you will often have few options available. You bank cannot help you in situations like this as they have their own protocol to lending and will usually take weeks to approve your loan. If you do not have a very good credit rating, it will be difficult to get a loan from your bank at all. Your only choice will be to take a payday loan from a payday lender.
A payday loan is just like an advance payment of your salary with a small fee attached for the service. That is how the direct payday lenders make their profit. However, sometimes when we really need our salary in advance, the small percentage of interest and fee is a small price to pay.
Where do you find payday lenders?
Payday lenders usually advertise their business in television ads, in magazines and flyers but the most convenient way to find payday lenders are through a search engine online. Just log on to the Internet and search for direct lenders and your zip code and a whole list of them will appear.
While there are a lot of payday lenders willing to lend you their money, you should take extra precautions to pick one that is legitimate, and most of all, is offering you the best package for your specific needs. Once you have found the lender that fits your requirements, you should then check on their lending platform, which in this case, their website.
You will be filling up an online application for your loan with your personal and important banking details so you have to make sure that the website you are using to input your details is secured with an SSL certificate. You will be able to see this by checking the web address and be sure that it begins with https:// instead of http://. The former is a secured protocol and the latter is insecure.
Once you’ve confirmed that the payday lender is legitimate, and their lending platform is secure, fill in the application form and submit all the required documents either by fax or by email. Some direct payday lenders only need your application form and do not need any extra documentations.
The application process
Next, they will process your application and this will generally take about 30 minutes to an hour long. As soon as your application is completed, you will be notified either via email or a telephone call and your money will be wired into your checking account within the day. Direct payday lenders no third party will be able to do this faster as they have the money with them. On the other hand, brokers will need to have the money wired to them, and then they to you, which may take a little while longer.
It is this simplicity though, that makes payday lenders such an attractive alternative to your local banks who will take weeks just to approve a loan and another week or so to dispatch the money. However, a payday loan is meant to be a short term solution to your immediate financial needs and should be treated as such. You should only borrow what you need and nothing more as you will be charged with a very hefty penalty fee and high interest rates if you do not make your repayment on time.
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