What Do You Need to Get a Payday Loan? This Is How They Work

If you’ve never tried to get a payday loan before, it might seem like a daunting task.

There’s a stigma around payday loans that keeps a lot of people from trying to get one, but they can be really helpful when things get tight. They exist to make it easy for you to handle emergencies when they come up, even when you don’t have a great credit score.

So, what do you need to get a payday loan? In this post, we’re going to give you a quick rundown of how these loans work and what you’ll need to provide in order to get one. We’ll also tell you a few key things you should know about payday lending and the role it plays in your finances.

What Is a Payday Loan?

A payday loan is a short-term, high-cost loan that gives you money fast. Many payday lenders offer between $50 and $1,000 over a two-week term, but APR is typically quite high. Most payday loans are meant to be paid back almost immediately, or else you can dig yourself a pretty substantial financial hole.

There are hundreds of payday lenders out there, so you have to do your research ahead of time to get the best loan terms for your situation. For example, Captain Cash offers very specific loan terms that might work for some, but not others. Different lenders specialize in different things.

What Do You Need to Get a Payday Loan?

Payday loans can be given out online or at brick and mortar locations. The actual requirements to get the loan processed are much simpler than other types of personal loans. All you need to provide is:

  • Proof of age (you have to be at least 18 years old).
  • Your banking information.
  • Proof of income and valid identification.

Some lenders will require a credit check, but not all. Because of the nature of a payday loan, they can be approved in a matter of minutes. You’ll either give the lender a post-dated cheque for the repayment date or if you’re using an online lender, you’ll go online and make the payment.

Should You Get a Payday Loan?

It’s important to educate yourself on the pitfalls of payday loans. You should only apply for one if you’re confident in your ability to pay the loan back within the term. Because of the high APR, often in triple-digits, you can end up spending a lot more than you receive on a payday loan if you’re late on repayment.

Make the Best Decision For You

Now that we’ve answered the question, “what do you need to get a payday loan”, you can make an educated decision on whether one of these loans is the best move for your situation. You should always look into other types of personal loans and lines of credit before committing to a payday loan. Never rush into anything when it comes to your personal finance.

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