You have probably seen plenty of commercials that constantly advertise payday loans. These types of loans are very easy to get especially since they do not require any credit checks. So regardless of whether you have bad credit or good credit, they will give you a loan in the amount that you want. All you need is a pay stub, and some basic information about your checking account. However what many people fail to realize is that you can still end up causing your self more debt. The whole idea behind these payday loans is that you promise to pay them back from your next paycheck.
They will automatically take the money out of your bank account on the date you indicate that you will be paid. However if something were to happen and that money is not in the account when they try to take it out, you will begin to rack up a lot of fees. Not only from your bank account but from them as well. Some people even go as far as getting a payday loan in order to pay off the pay day loan they already have.
You may think that there is no way it can end up affecting your credit, but you are very wrong about that. They will continue to try and take the money out of your account and your bank will definitely come after you for the bank fees.
Even if you think you can just close out the account and be done with it, you can’t. The bank will not allow you to close out your bank account unless; you pay all of the money you currently owe. It is also very important that you check the company that you are contacting. Many people have been scammed thinking that they are dealing with a legitimate company only to find out that they are dealing with a fraudulent group of people.
Once they get your bank account information and the date of your next direct deposit they can end up cleaning out your bank account. By the time you realize what has happened you are in more debt then you were before, and they will probably not end up sending you the money you requested either. If they are a legitimate e company you can expect the interest rates to be very high. You would definitely be better off just saving up the money yourself in order to avoid getting deeper in debt.