Key Quotes From The September 2022 Seminar Focused on Payday Loans
On September 29, 2022, an economic seminar was held in Jackson, Michigan. The topic was of current interest – “How to get a payday loan online”. The seminar was prepared based on the materials of the credit bureau and was conducted by volunteer David Ross from the National Financial Literacy Association.
The main objective of the seminar was to tell in an accessible form how to apply for a payday loan online on favorable terms and minimize the risk of late payments.
The speaker highlighted the following topical issues:
- How to get a payday loan from a microfinance institution? What do you need for a payday loan?
- What are the risks associated with borrowing?
- Basic precautions everyone should know
- The rights and obligations of the parties (microfinance institution and borrowers)
- Five basic steps for obtaining a payday loan remotely
Each of the listed topics was discussed in detail with examples and figures.
Below we give the key quotes by David Ross, the speaker.
How to get a payday loan from a microfinance institution? What do you need for a payday loan?
A payday loan is a fast short-term loan provided by microfinance companies. The procedure is speedy and straightforward. A payday loan is issued for up to 4 weeks. Such loans are typically taken when money is needed for urgent needs and at the same time you do not want to burden your relatives and borrow from them. There is no collateral involved and you can apply online from the comfort of your home, for instance, by applying with https://www.first-federal.com/payday-loans-jackson-mi. This referral service has gained a good reputation and can be used safely. Thousands of Jackson (Michigan) residents have already found the best payday loan with the help of this company.
To qualify for a payday loan, most lenders only require that borrowers:
- Be at least 18 years old; ·
- Have an active checking account in your name;
- Provide some proof of income as well as valid identification.
There is nothing complicated about applying for a loan online. Even seniors can apply for a loan remotely. In addition, it is convenient: you do not need to go anywhere, wait for approval and get even more upset if you get rejected.
When applying for a loan, you need to provide the following information:
- Reliable personal data – full name, age, SSN, birth date;
- Income information: source of income and its size;
- Bank account number.
- Contact details: home address, phone number, email.
If approved, the funds are transferred to the borrower’s bank account instantly.
What are the risks associated with borrowing?
- Carelessness. Many people are so happy with the approved loan that they do not read the agreement and tend to sign documents faster. They do not realize that they agree with all the conditions, rates and commissions specified in the document by putting their signature on the agreement.
- Low financial literacy. When applying for a loan, you need to know what to look for, what questions you should ask the employee. how to plan your budget to pay off the loan without delay.
- Unforeseen circumstances. It is impossible to plan or predict paycheck delays. All this greatly complicates the payment of payday loans. In this case, the situation is worsened by the accrual of late payment fines.
- High interest rate. Interest is calculated daily, and even a delay of several days will significantly increase the debt.
Basic precautions everyone should know
Despite all the risks, it is possible to take out a payday loan and repay it without problems and consequences. You just need to remember 7 rules.
- Apply for a payday loan only in an emergency and if you will be able to repay the debt quickly. Many microfinance institutions offer promotions for first-time customers. This is the best option for those who have never applied for a payday loan before.
- Compare the offers and check the lender’s license. You need to select the best terms and be sure that the company is licensed to issue loans online.
- Read the contract carefully and ask questions. Documents may hide payments that increase the total loan amount. Be sure to find out how you can pay off the loan and whether there will be a commission.
- Calculate overpayment. Any employee is required to provide this information. The amount of interest paid determines the overpayment on the loan. A preliminary calculation will help to correctly predict your financial expenses. To do it yourself, you can use an online calculator.
- Ask for a grace period if you don’t have time to repay the debt. If you have no ability to pay the debt on time, it is better to extend your loan term than to ruin your credit history.
- Do not take loans that involve collateral and guarantors. If an organization demands to leave something as a pledge, these are scammers. Try to borrow money without collateral and guarantors. Legit payday loans do not involve collateral or guarantors.
- As soon as you repay your loan, ask for a zero debt certificate. This will avoid litigation in the event of claims from the lender. The certificate will be a confirmation of the fulfillment of your obligations to the company.
The rights and obligations of the parties (microfinance institution and borrowers)
According to this law, microfinance companies have the right to:
- Provide loans to individuals and legal entities in the amount of up to $2,500;
- Request documents and information to resolve the issue of granting a loan;
- Carry out other activities subject to legal restrictions;
- Provide information about borrowers to credit bureaus.
Microfinance companies are required to:
- Provide the borrower with all the necessary information – the rights and obligations of the borrower, the total loan, repayment terms, interest rate, the procedure for calculating interest, etc.;
- Provide the borrower with information about the terms of the contract before its conclusion;
- Keep information about borrowers’ transactions confidential.
The borrower, in turn, has the following rights and obligations:
- Has the right to get acquainted with the terms and conditions – the procedure, conditions, payments;
- Has the right to dispose of borrowed funds within the limitations of the contract;
- Obliged to provide all the necessary documents and information for the conclusion of the contract.
Five basic steps for obtaining a payday loan remotely
Now it’s worth talking in detail about how to get an online payday loan quickly and how it happens. The procedure is as follows:
- Go to the lender’s website or a loan referral service website;
- Select the desired loan amount and duration;
- Complete a short application form;
- Give your consent to the processing of personal data;
- E-sign a loan agreement;
- Receive funds.
As mentioned above, fast online payday loans are disbursed in record time. Of course, there is a chance that funding will be delayed. However, this time does not exceed 24 hours. And if a person has already taken online payday loans with this lender, then the money is transferred even faster.
We hope these extracts from David Ross’ speech will help you better understand how to get the best payday loan online. We also recommend reading tips on how to escape payday loan debt.