If you’re thinking of applying for a payday loan, then you have probably done some reading about the subject. No doubt you have come across lists of dos and don’ts, pros and cons, advantages and disadvantages, and many other information about the payday loan.
The fact that you are reading this means you are not quite sure if you already have the information you need before sending your application. With all the countless tips you have read about payday loan, here is yet another piece of wisdom about what you need if you decide to get that loan.
Simple Requirements for a Payday Loan
Lenders will demand very little for your loan application. You simply need to provide your name, contact information, details about your employment, and the names and contact information of a few references. They will also ask for the details of your bank account where they will deposit your loan. The application for a payday loan can be sent online. The process is simple and spares you the embarrassment of actually going to a lending company to submit your application.
Applications for a payday loan go through a swift review procedure, and they are often approved within 24 hours. Once approved, the amount you borrowed will be deposited to your account, and you will pay this amount on your next payday. If you have a bad credit rating, you do not have to worry about getting your application rejected; your credit rating will not be a determining factor as to whether your loan will be granted or not.
The Practical Requirement When Applying for a Payday Loan
With very minimal requirements needed, it is easy to see why so many people get a payday loan. However, you might be asking, “If it’s that easy to get a payday loan, then why is it taking the rap for so many people’s debt problems?” The answer is simple. A lot of those who applied for the loan did not have one important thing that is necessary above all else: discipline.
For a payday loan, lending companies commonly charge a fee of $15 for every $100 you borrow. This fee is to be paid on your next payday. That means if you borrowed $100, you need to pay this back with the $15 fee the next time you get your salary. Some people make the mistake of delaying the payment to the next payday because, after all, the fee is “quite small.” The amount gets rolled over from one payment term to the next, and before long, it will accumulate until it becomes difficult to pay.
So where does discipline fit in all these? If the fee for a payday loan is $15 for every $100, and you borrowed $100, that means you need to save just over a dollar every day for the next two weeks. When payday comes, you will have saved enough to cover the fee for your loan. Saving this amount and being resolved to pay off your debt promptly requires discipline. Never fall for the temptation to think that “it’s just $15.” If you think this way, chances are, you will neglect to pay it.
A payday loan will become a nightmare only for those who fail to settle their debts promptly. However, this need not happen to you. You simply have to remember the most important requirement in getting a payday loan. Discipline yourself. Practice self-control, manage your savings well, and firmly decide to settle your debt as quickly as possible. Although it is true that some people have sunk deeper and deeper in debt because of their payday loan, it is equally true that their struggles are avoidable in the first place. There is a practical wisdom in exercising self-discipline, and through it, you can get the full benefit of a payday loan.