For many the status quo of life equates to living paycheck to paycheck. This works for most everybody most of the time, but sometimes Life gets in the way. Life throws things at everyone once in a while, the old adage “Murphy’s Law” does come into play. What are the options when one is faced with this dilemma? One can borrow money from relatives or friends; if this option isn’t available one could take a small loan from their bank. Utilizing the bank option requires a decent amount of credit built up with their creditors. If the credit isn’t good enough, are all options off the table? The answer to that question is no, acquiring a payday loan is the best option here.
For the uninitiated, a payday loan is a special type of loan offered by companies that specialize in this financial service. The process is fairly simple enough, one fills out the application with their checking information included on it. One also brings in a current bank statement to show that they have an active and positive checking account. Once all of this information is verified, then the borrower can start the process of the actual loan request. The borrower is then informed of the fee required for the amount requested. The bigger the amount of money requested, the bigger the loan fee will be.
The borrower then writes a check in the amount of the money requested and the fee combined. For instance, the borrower requests $100 and the company adds a $12 fee for the service. The borrower would then write a check in the amount of $112 to the company. In the process of applying for the loan, the company will find out when the borrower gets paid (weekly, bi-weekly, etc.) and when the next payday will be. The borrower then writes the next pay date on their check, in essence post-dating the check. The loan is then completed and the borrower comes back on their next pay date to pay the company back.
Once this transaction is completed, the company then gives the post-dated check back to the borrower. If the borrower cannot come to settle the debt on their pay date, the company then cashes the post-dated check. The big plus of using a payday loan service in this situation is that payday loan companies don’t take credit history into account when taking on new customers. It’s a win-win for both parties, the company makes their money on the fee and the borrower gets their much-needed money to get themselves out of a short-term financial emergency.