Payday Loans in California
Payday loans in California have a negative reputation, but they are actually a very positive financial product. Problems arise when unscrupulous payday lenders encourage borrowers to take out additional payday loans to repay their previous payday loans, but this doesn't necessarily have to happen. You can obtain payday loans in California and not fall into serious financial trouble, and this article will show you how.
Why Would You Need a Payday Loan?
According to Forbes, 63 percent of Americans do not have $500 for an emergency. In addition to that, approximately 33 percent of families in America do not have anything saved for a rainy day. Experts also learned that 56.3 percent of Americans do not have $1,000 in their checking and savings accounts. These statistics tell us that the payday loan is a highly necessary financial product in America.
Most emergencies do not require thousands of dollars, so if you have enough equity in your home to qualify for a loan, the home equity loan would be an inappropriate answer for an emergency that costs less than $500. The payday loan is just right for the type of emergency that you are likely to experience. A payday lender will lend between $250 and $2,500.
What Are the Benefits of Getting a Payday Loan in California
A payday loan would be a very positive decision to make because the alternatives are more expensive. For example, if you were to write a check that bounces, you would pay a $54 insufficient funds fee. If you put the emergency on your credit card and make a late payment, you would be charged a $37 late fee. If you paid your utility bill late, you would be charged a late fee and a reconnect fee of $46. In contrast, a payday loan would only cost you $15, and you would have that loan paid in full after you receive your next paycheck.
What Do You Need to Know to Get a Payday Loan in California
The payday loan is an unsecured loan. That means you will not be required to offer the lender any collateral before you can receive it. In order to qualify for the payday loan, you will need to present the following:
- Valid Identification;
- Your Checking Account Number;
- Paystubs Or Bank Statements.
When you are approved for a payday loan, you will write a check for the amount that you borrowed as well as the fee. You will date this check for after you receive your next paycheck. The lender will inform you of the date that you will need to repay the loan. When that day arrives, the lender can cash your check.
The process for obtaining a loan can be very simple. If you apply online, you may complete the application on the lender's website. You may need to fax the additional documents mentioned above that the lender needs. Then, the lender can present you with approval over the phone or online, and you can receive your money through direct deposit.