Payday Loans and Personal Loans: The Facts You Need To Know

Some people need a little extra money until their paycheck comes in, so they inquire about a payday loan. Getting this personal loan is not hard, but paying back the fees time and time again can be a hassle. When you have multiple personal loans out, you may be affected when applying for another sg personal loan. Also, your checking account will be affected if you do not have the funds in the bank to cover the payday loan you have acquired.
Availability
There are many payday loan operations around the world. They may operate under different names, but their purpose is the same. They provide loans for those who need money for bills, vacations, extracurricular activities or other items. Whatever the case may be, those strapped for funds can visit any payday licensed money lender and fill out an application for a loan.
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Function
A payday loan will usually range from $100 to $500. The more income you have, the more you will be allowed to borrow. The amount you choose to borrow will determine the fee you have to pay, which will apply to each $100 you borrow. Also, you will have to pay the check back bi-weekly, and for those who are paid monthly, they can pay back their loan monthly. Some people get caught up with these companies, because when the time comes to pay the loan back, they still do not have enough money. Therefore they must pay the fees back for the loan, and have the option to borrow again, paying more fees. This is the tactic of the payday loans operators. They give people the extra cash they need, but they charge high fees in order to borrow the funds.
Documentation
When applying for a payday loan, you will need certain documentation, to verify what you have written down on the loan application. A valid driver’s license is needed when applying. In addition, you must be working, and proof of work is verified. The types of proof needed to verify your employment are pay stubs. Payday loans will not accept pay stubs that are not recent. This is to verify that you are currently employed. In addition to the pay stubs, a utility bill may be required, showing you live at the address that you listed on your application.
Other Considerations
The most important fact about a payday loan from moneylender is that you must have an active checking account in order to qualify for a payday loan. Your checking account must be active, without a negative balance. In case you are wondering, the loan facility will call and verify that your checking account is active and has a positive balance before awarding you a payday loan. In the event that you do not come in and pay back your loan, the payday loan facility will send the check you have written with the loan amount and fee amount through your bank–it will then be your responsibility to pay any fees that may occur if your check does not clear through the bank. Some payday loans allow you to have a savings account as well.
References
References are needed when you apply for the payday loan. References are needed in the event that you fail to pay back your loan. This gives the loan facilities a way to contact if you do not pay back your loan, and if the contacts they have for you are no longer applicable. In addition to calling your references, payday loan operators will contact your employer in regards to paying back your loan, and you can even be prosecuted if you fail to pay the loan back.