Life can put you in a tough spot occasionally. If you are confident enough in a challenging situation, then you will certainly find a way to come out of it.
You may have been following a financial planner and sounding financially pleasing, but some contexts like unexpected medical bills, urgent home renovation needs, vehicle repair, etc., can disturb your budget. If you experience a financial setback, consider the option of a payday loan which is fast, easy to apply, and secure.
What is a Payday Loan?
A payday loan is also called a short-term loan or emergency loan designed to help you in your financial crisis. It is not intended for a long-term solution.
Payday loans California may help you avoid costly overdraft fees, overdue fees, utility disconnection fees, etc. Also, the borrower requires to pay back the payday loans in California in full on their next paycheck.
Rules that payday loan lenders must follow:
There are several payday loan lending firms. You may have been watching the ads on television about fast cash loans with no credit check. The ads would also have smiling faces at the end; unfortunately, this might not be the case in reality.
Without performing a proper check of the loan policies of the lending firm may worsen your situation. Payday loan California states some mandatory rules that payday loan lenders must inform their borrowers.
- The maximum fee a payday loan lender applies for the loan, which is $15 for every $100, you borrow
- The date to repay the loan and the amount borrower must repay
- What it would cost to borrow $500, as the maximum limit to give a payday loan is $300
- Only one payday loan can be approved at a time. Customers can apply for another short-term loan after paying back the first loan.
- If you can’t repay the loan on time, then 2.5% interest charges per month will be applied. This rate of interest is only applied to the original amount you have received as a loan. Lenders can’t charge interest on interest.
Proofs that Payday loan lenders can ask for:
If you have decided to apply for a California payday loan, then there is some information that you need to give to the lenders as a part of the loan procedure.
- Proof of regular source of income
- An identification proof that states you are a permanent resident of California
- Details of bank account
- Home address
You need to give all information while filling the loan application form online/offline. Once the form is submitted, the lender will verify all the detail and notify about the loan approval on the registered email.
Things you should check before selecting a lender:
Performing a proper check on the lender’s profile is a sign of a responsible citizen and keeps you protected from fraudsters. California payday loan states some guidelines that should be followed by every state verified lending firm:
- To distribute payday loans, all lenders, whether a storefront or online – must be licensed by the department of Financial Protection and Innovation (DFPI). It is wise to visit https://dfpi.ca.gov/ to verify a lender’s license.
- License and loan policies should be displayed by every storefront or the website of the lender.
- The borrower must receive the loan contract copy from the lender.
- As per the payday loan in California, a lender cannot threaten to prosecute you in criminal court to recover insufficient funds.
You might feel tempted to apply as quickly as possible for a fast cash loan when you are financially fragile, but spending some time to know the state loan policies is worth it.
Payday lending scams are unfortunate and can make your situation worse. Thus, get enough information about payday loan California policies to stay protected from the scam.
Assess your situation carefully, understand the loan amount you should request, select a licensed payday loan lending firm, and finally fill up the loan application form appropriately.
A payday loan service definitely provides benefits. However, you need to understand them properly before applying for one.