5 Things To Do Before Getting A Payday Loan
If only money grew on trees . . . wouldn't that be great for when you need to pay for emergencies and other expenses and have an absolutely horrible credit score? Unfortunately, there are no money trees, and it's nearly impossible to get approved for a loan from a bank. But there are payday lenders. However, it's important to walk into the office of a payday lender fully prepared so your loan approval will be fast when you need it. Here are a few things you need to do before getting a payday loan.
Make sure your addresses match
One thing that can cause a loan to take longer to get approved is if the addresses on your driver's license (or other government-issued identification) and your financial documents do not match. Typically, payday lenders want to verify your home address by asking for things like a current lease or utility bill in your name. Also, if your home address is listed on your pay stubs, you'll want to be sure that it matches all the other documents. While different addresses won't necessarily prevent you from getting a payday loan, you may not get the money the same day.
Have your pay direct deposited into a checking account
Payday lenders typically ask for the checking account information and proof that your paycheck is direct deposited into it. It's easier for you and the payday lender to have your repayment plan scheduled to be taken from the same checking account on the same day your paycheck direct-deposits, or the day after. If your direct deposit goes into your savings account, switch it over to be deposited into your checking account, at least temporarily until your payday loan is paid in full at the end of the loan agreement.
Get another checking account at a different bank
As Murphy's Law would have it, the worst things happen at the worst possible times. If, for whatever reason, your current checking account gets closed, either due to insufficient funds or someone stealing your identity, having another checking account already opened will make it easier for you to transition from the old bank to the new one. As anyone who has had a checking account closed by a bank can tell you, it can be extremely difficult to open another checking account after the fact. In case you do need to transition to your secondary checking account, immediately inform your payday lender and any other places where you have automatic bill payments of the change.
Determine how much you can afford to pay on the loan
Instead of asking for a specific amount for a payday loan to cover what you need, it's crucial that you determine how much you'll be able to pay back and then go from there in determining how much of a loan to get. Go through your budget and figure out how much money you typically have left over after bills are paid and groceries are bought, then cut that amount at least in half just to be on the safe side. Don't try to cut it too close, or you could end up needing to extend the payday loan.
Make a list of the exact due dates of all of your bills
As you go through your budget, make a list of each and every bill and when they need to be paid. If any particular time of month is top-heavy with a lot of bills, such as if your rent payment is due on the 1st and the electric is due on the 3rd, see if any of the companies and/or creditors will allow you to change your due dates so your bills are evenly balanced throughout the month. This will also help you to keep on track with paying your bills on time, which can improve your credit score.
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