If you find yourself in need of some immediate cash, one way to obtain that cash is via a payday loan. Payday loans are based on the amount of money that you make in a pay period and generally charge a really high interest rate in return for providing you money within the next business day. Here are four tips for making a payday loan work for you.
#1 Get Proof of Income Ready
If you want to apply for a payday loan, you need to be able to show a steady source of income. You can show your income via your weekly or monthly pay check. If you are self-employed, you may need to show more than just your last couple pay stubs. Depending on the loan company you go through, you may also be asked to show last year's tax returns to prove your work at home status.
#2 Only Borrow What You Need
Payday lenders generally let you know the max amount that you can borrow. However, that is not the maximum amount that you have to borrow. You can choose to borrow less money. Many payday lenders set the loan increments at twenty-five or fifty dollar, so you'll want to borrow the amount to the closest twenty-five or fifty-dollar increment to the amount that you need. Don't borrow more than what you need; this will increase the amount of interest that you have to pay back.
#3 Make a Repayment Plan
You need to make sure that you can repay the loan before you take it out. Sit down and look at all of your bills and money needs, and create a detailed financial plan for the next few weeks. Make sure you use and stick to this plan. Having a plan will help ensure that you are able to pay back your loan on time. If you are not able to pay back your loan, it could overdraw your bank account resulting in additional fees.
If your bank refused the payment, you could face increased penalties and interest from the payday loan lender. It is important that you are able to pay back the loan. You only have one pay day to pay back the loan, so you need to be careful about your budget and make sure that you will be able to return the money.
Before you get a payday loan, make sure that you have proof of income ready, only borrow what you need, create your own personal repayment plan and work to ensure that you have money in your account to pay for the loan. You don't want to get sucked into a cycle of continuously taking out payday loans in order to pay your pay day loan. Check out http://www.paydayexpresscashadvance.com for more tips.