Payday loans are a form of short-term loan designed for those unexpected emergencies life throws at us. While it’s nice to think nobody should ever need this type of loan, the truth is that many people in Bakersfield, California rely on payday loans in many instances.
Of course, payday loans come with certain setbacks, especially when left unpaid, but they still offer financial respite for people that need it most. Payday loans in Bakersfield are often the only option left for some residents of the city, particularly those living pay cheque to pay cheque.
If you are looking for payday loans in Bakersfield California , be sure to read our complete guide below. It covers everything you should know before getting a payday loan in Bakersfield!
What is a Payday Loan ?
Most people are familiar with a payday loan, but not everyone fully understands how they work and why people use them.
Simply put, a payday loan is a short-term loan with high interest. They are designed to be used over a short period of time, typically no longer than a month. When taking out a payday loan, the recipient of the loan agrees to pay back the entire amount by a set date, usually on their next payday – hence the name payday loans.
The amount of the loan tends to vary from each provider, although is usually no more than a few hundred dollars, and are mostly processed online.
Things to Consider Before Getting Payday Loans in Bakersfield CA
There is a certain stigma surrounding payday loans, which residents in Bakersfield, CA should be mindful of. The main issue with these loans is the interest rates. These are among the highest interest rates of any type of loan, meaning you could end up paying back much more money than you originally borrowed.
The second issue arises from not paying back the loan on time. Those that miss the agreed repayment date typically face a high late fee along with the current interest rate, which often leads to a snowballing effect when you can’t repay the loan.
However, when used responsibly, a payday loan needn’t cost too much. For instance, if you know you can afford to repay the loan amount and the interest rate – which is always clearly stated before the loan is provided – it’s possible to borrow money and only pay a minor amount in interest.
This makes a payday loan quite useful for those difficult moments where cash is short, but you can’t avoid paying an expense. For instance, if your car breaks down and you have no other way of getting to work, a payday loan can cover repair costs until your next pay cheque.
How to Apply for a Payday Loans Bakersfield CA
Payday loans are widely available in Bakersfield, CA. This means it should be easy enough to find a loan that you can afford to pay back, although there are certain requirements most providers have.
For instance, in most cases with a payday loan, you require a checking account and a source of income. This makes sense considering most loans are processed entirely online. That said, some cash loan providers in Bakersfield CA are available too, with brick and mortar locations offering cash in hand.
All payday loans found in Bakersfield California will need you to have a source of income, for obvious reasons – if you can’t repay the loan then there is no money to be made giving you one!
So, you probably need evidence of your income, usually in the shape of a pay slip or a bank statement. You will also need your personal details ready, along with a checking account if applying for a loan online.
When going for an online payday loan in Bakersfield, simply search for local loan providers, researching each option to see their rates and terms. Once you find a suitable website, apply for the amount you need in the loan, providing all the necessary personal info.
You will need to agree on a repayment date – choose your next payday to ensure the money is in your bank to repay the loan. Remember to check the interest rate and any late fees to ensure you know exactly how much the loan costs and to avoid any unexpected surprises!
The process is much the same for applying in a brick and mortar location, so make sure you have all the necessary details for either method!