People that won’t get paid for a while but need money now often turn to guaranteed payday loans. Lending institutions that specialize in this type of loan can often get funds to you more quickly than other types of lenders.
If you decide that this is the way you want to go about securing some extra funds, make sure that you live in a state where it’s legal. There are multiple states in the U.S. that don’t allow this type of lending.
Finance charges on loans of this type can range anywhere from 15 to 30 percent of the amount borrowed in most situations. Since the finance charges can be quite large, youll want to only borrow what is truly needed. Youll also want to be sure you will have no problem paying the money back in full by the collection date.
If you take out this type of loan, you have to make sure that you can pay it back within a reasonable time frame. If you don’t pay it off on time, fees and interest will really start to stack up.
Some lenders will automatically withdraw your payment from your checking account, and others will ask you to write a post dated check. Either way, lenders usually want you to come back in to make the payment yourself.
If you think that the payday store is going to cash your check, make sure you have funds available. People sometimes can’t pay back the loan and get deeper in the hole by racking up bounced check fees.
While these loans are extremely easy to get, make sure that you’re very careful. People sometimes get stuck paying thousands of dollars in fees and interest on a loan that was only $500. Make sure that you can pay off the entire loan with your next pay check.