If you find yourself short on funds until next payday, you may be considering taking out a cash advance in Garden Grove. Although there are many different small loans available, the most widely-available and easily-obtained are payday loans. These loans give you cash in hand for a short period, normally two weeks. At the end of that term, you go back and retire the loan with funds from your pay. As convenient as that may be, it’s important that you know all the facts before taking a cash advance in Garden Grove.
Usually, payday loans ignore credit history entirely. The only documentation you will need is a photo ID, a current paystub, and a bank statement proving you have an open checking account. You will also be required to write a check for the entire amount of the loan, any fees, and the interest. This check will act as a guarantee that you will repay. If you do not return to settle the loan, the lender can then cash your check to recoup the funds.
While this is the standard procedure for taking a cash advance in Garden Grove, there are two unscrupulous and illegal practices to be aware of before you sign. As all payday loan laws are written by the individual state, be aware that the limit for a payday loan term is 31 days by law.
Second, be wary of rollovers. A rollover is when the loan and all of its fees and interest is paid off by a second loan. The second loan then has more fees and interest attached. This practice can quickly cause your balance to climb out of control, trapping the borrower into a larger loan than they can handle. Don’t be fooled by offers to do this when taking a cash advance in Garden Grove, as this practice is illegal.
Being educated about the above rules will help you avoid being pressured or scammed. Some lenders will try to prey off of ignorance, so it’s important to be informed. While these rules may seem restrictive, they are in place to make loans easier to pay back. If your lender is disobeying the law, you will find it much harder to settle your loan fairly.
Finally, don’t let a lender bully you. If they have broken the law, you cannot be prosecuted for their actions. Lenders may try to use threats to force you to be silent, but these threats are idle. Payday loans are a civil matter, not a criminal one. You should never be in fear of your lender. Being aware of these issues will help you make smart borrowing decisions and avoid being taken advantage of.