The Why And How Of Payday Loans

by : Rachel Yoshida

Nobody wants to have to get a payday loan to pay for groceries or the electric bill or anything like that until their next paycheck. Visiting the local payday loan store risks someone recognizing who you are and then telling everyone that you're in a bad financial situation (when you would rather that be private). Maybe you haven't ever had to get a payday loan before and this is your first time. If it is, you've come to the right place.

To get a payday loan, most lenders require that you be at least 18 years old or considered a legal adult where you live. You will also likely need to have proof of identification, which can be your driver's license, but if you do not have one, your birth certificate or other documents could probably suffice.

A checking account is next on the list of must haves. Not only that, but it has to be in good standing (which means it cannot have a negative balance).

A job is the most important thing that you have to have and most of the time, you have to offer proof of the fact that you are employed. Pay stubs are the best proof that you can have and you should have at least 2 recent pay stubs.

Recent is not last month; recent is generally the past couple of weeks. Some lenders will not take pay stubs that are older than that as proof of employment. If you have a job, why would you not have your past two pay stubs, anyway?

The best thing that you can do for your financial situation is to pay off the loan as quickly as possible and never, ever get a payday loan for something you do not need to survive until your next payday. This can include anything from having to buy food for the next week to fixing your primary vehicle to purchasing gas to get to work with.

Getting a payday loan for anything other than an emergency is an insult to those of us who do really have to have them for emergency purposes and is part of the reason that the industry is being attacked on all sides by a number of different legislators.

Please use payday loans responsibly by using them for emergencies only and by paying the balance off on time. You will not only be helping yourself and the industry, you will also be helping people who rely on these services from time to time to get their bills paid.