Payday loans like Wonga are permitted in 37 states. They are loans in which you can take a cash advance from your upcoming paycheck. It is normally small, the repayment period is short, and with easy qualifications.
For you to obtain payday loans, all you need to do is visit a store that offers them or you can apply online or by phone. The amount you will be able to receive will depend on the state in which you live. But in many cases, it can go up to $500. You have to be an adult. Also, you need valid identification for yourself, proof of income, a checking account, and a phone number.
Why You Might Want A Payday Loan
There are situations where a payday loan might be very helpful like when you need cash for a very short period and you are sure that you are going to be in a position to settle it using your next paycheck and make ends moving, then you can as well consider taking a payday loan.
In most instances, you can use a payday loan to cover a bill which is very crucial.
- You can borrow to clear rent at the end of the month before your payment.
- You can take a payday loan to keep your lights on and activate your phone service.
- If you have pressing health expenses, you can as well take a payday loan any time of the month.
- Having a simple budget shortfall can lead you to take a payday loan
While payday loans can be a way to stave off your financial emergencies, you should never take it if you know that, at the end of the two weeks, you will not be in a position to clear it up. If you cannot clear it, it will become a nightmare for you as the fees will continue until you are in a position to clear them and in case you default, you can be sued by the lender. In case you lose the case, you will be left with a monetary judgment which will potentially be bloated with possible wage garnishment and court costs.
The truth is that these types of loans are not reported to the credit bureaus unless the debt is referred to as a collection. When you end up in the collection accounts, it will have a dent in your credit scores. You will start receiving collection calls and in case you don’t pay, the collector can sue you just like the lender.
Why These Types of Loans Might Not Be An Option
When you calculate and know how much you are going to pay after borrowing from a payday lender, it might raise the red flag. Apart from the fees, there are other penalties that might pile on the payday loan. In case the check is deposited and yet you don’t have funds to cover the withdrawal of the same, your bank will definitely hit on you with a fee for non-sufficient funds which might be $30 or even more.
