Taking out a payday loan from a company like American Cash Advance and Title Loan lets you get a cash advance against your next paycheck. Many lenders actually let you take out a loan for longer too and give you one free period before you need to pay off that loan. Unlike bank loans that are often large in size and require that you have good credit history to get one, you can get a payday loan with a low credit score or a poor credit history. Before applying for one though, you should know how to make the most out of that loan.
The top reason to get a payday loan is because you need a small amount of cash to tide you over between checks and you do not want to go through the bank. As long as you have some type of income source like a job that you can show proof of and a bank account, you can usually get a loan. The lender may ask for a check that the company uses to automatically take out your payment when it comes due. Many people use these loans because they do not qualify for other types of loans.
Be wary of any lender that requires you cash your check on-site. These companies often operate in states that have limits on how much interest lenders can charge. Those lenders will charge you a high fee for cashing your check through them that can be 10% or more of the total loan. They may claim that it will take longer for you to get your cash when you deposit the check in your own bank account. The top payday loan lenders are those who charge you a smaller fee for cashing a check on-site and those who do not charge any fee for this service.
Depending on the size of the loan that you take out, you may find yourself making payments over the coming months and spending some of each paycheck that you get. Using an automatic debit payment is a good way to pay your loan off faster. The lender will automatically take out payment on the due date that you selected. You can also pay off your loan faster with smaller payments that you make before the due date and when you negotiate the terms of that loan.
Payday loans allow those who need smaller loans and those who cannot get bank loans get cash between paychecks. Knowing how to cash your check, pay your loan faster and why you should get one will help you make the most of your payday loan.
Dixie Somers is a freelance writer and blogger for business, home, and family niches. Dixie lives in Phoenix, Arizona, and is the proud mother of three beautiful girls and wife to a wonderful husband.