Do I Need a Payday Loan?

man pulling cash out of wallet

Payday loans are an accessible solution for those that have found themselves in a financial bind without access to other means to acquire cash quickly. If you’re in a position where you think you need a payday loan, answering the questions below could help you decide if this is the best decision for you.

Take this self-assessment quiz to see if a payday loan would help

Sometimes life happens and you need money fast. If you are considering a payday loan, this five-question quiz may help! This quiz discusses other quick cash alternatives, what some loan companies look for in an application, and how payday loans are commonly used. Of course, every lender is different, and your personal financial decisions are up to you. This fun self-assessment quiz is purely for entertainment purposes. 

  1. Do you have an emergency unexpected expense that you need to pay?
    1. I need money now!
    2. Yes! This expense is necessary for my family or for my job.
    3. This expense is necessary, but it is a recurring expense (like groceries).
    4. Not really. I do not actually need to buy the item or service.

  1. Will a few hundred dollars help with that expense?
    1. It would make a good dent in the expense.
    2. Yes. A few hundred dollars would cover the funds necessary.
    3. I would probably need a few thousand dollars to cover the whole expense.
    4. No. This expense will cost tens of thousands of dollars. 

  1. Is the expense necessary or time sensitive? (I.E. Is it necessary for survival, for your job, or important to you and your family? Is it time-sensitive where it cannot wait until your next payday, or will there be a fee for missed payment?)
    1. It is necessary for me and my family, but it can wait until my next payday.
    2. I need to make a payment on this now. It cannot wait until payday because I will either owe a late fee by then or will loose something I need like my house, car, or job.
    3. This purchase needs to be made immediately, but it is not necessary. I can either return the item, or simply not make the purchase.
    4. This purchase is neither time-sensitive nor necessary.

  1. Do you have other options for how to cover the necessary funds?
    1. I might be able to get a credit card. I think my credit score might be good enough.
    2. No. I do not have the best credit. I do not have friends or family that can help. Getting a part-time job would not help either.
    3. I might be able to have a friend or family member lend me money.  
    4. I have a savings or a credit card that I could use. I could easily cover the purchase. I just do not want to dip into those funds.

  1. Are you over 18, live in a state that permits payday loans, and have a bank account open in your name? Do you currently have a job?
    1. I don’t want to answer that.
    2. Yes. I am over 18. I live in a state that has payday lenders. I have a bank account open in my name. I currently have a job.
    3. I receive other forms of income such as: social security, freelance work, disability, or others.
    4. No. None of that pertains to me

If you answered mostly A. A payday loan might work for you, but there may be other solutions too. Payday loans can help people in a bind who need quick cash. They are typically used to pay an emergency expense. However, payday loan users do not usually have other options. It is recommended to look into other forms of fast cash first. Consider a traditional bank loan, secured loan, or even a credit card. If none of these solutions work for you, then you might want to consider a payday loan. You can learn more about payday loans here.

If you answered mostly B. A payday loan might be a solution for you. Payday loans can be super helpful for some individuals that need quick cash. They are typically used by people who do not have a lot of other lending opportunities. These individuals need quick cash for an emergency expense. Want to learn more about how payday loans work in your state? California LoansTexas LoansKansas Loans.

If you answered mostly C. A payday loan might be one solution. However, there are multiple ways to get fast cash. When people need quick cash, a payday loan may be able to help. Payday loans are typically used to cover unexpected emergency expenses. Many payday loan users do not have a lot of quick cash options. Before deciding on a payday loan, you may want to consider other fund resources. Could you apply for a credit card or another type of loan? Do you have family that could lend money? If these solutions do not work for you, then you might want to consider a payday loan. Learn more about payday loans.

If you answered mostly D. Sounds like you might have other solutions. Payday loans can help people in a bind who need quick cash for an emergency expense. However, they are known for being expensive. You might want to consider a different loan like a traditional bank loan, or even a credit card. If you have friends or family that could lend you money, that might be another option. If you do not want to take out a loan, you could also look for a part-time side job or gig to help cover the bills. Budgeting your finances might also be a solution. Check out this Beginner’s Budgeting Guide on how to create your first budget. It breaks down the budgeting process and makes it super easy.

No matter your response, it is important to remember that your personal financial decisions are entirely up to you. This fun self-assessment quiz is purely for fun and entertainment purposes.

Were you surprised about the answer you received? Keep reading to learn more about why people get payday loans. Below are several questions on if you need a payday loan or not. 

How will I use the money?

Single pay loans should be used for emergency or required expenses. We recommend that customers aren’t using single pay loans to pay for expenses or items that are not urgent. Payday loans were created to help consumers out between paychecks, hence their name. This is another viable reason to use a payday loan; if you’re struggling to make it to your next paycheck and are concerned you will overdraft your account. You can get a payday loan to avoid the fee and pay it back once payday arrives.

For example, if your car breaks down and needs an urgent repair in order to run properly or you’ve had to make a sudden trip to the emergency room and can’t pay the fees out of pocket, these are both great reasons to utilize a single pay loan.

How quickly do I need cash?

The beauty of payday loans is that they are designed to get approved applicants their cash, fast. Most traditional lending institutions require several days from initial application to underwriting to ultimately deciding on approval or denial. Finally, the applicant receives cash, sometimes up to a month after applying.

We know that when someone is in a financial bind, they don’t have weeks to wait, they need money in a matter of hours.

If this sounds familiar, then a payday loan might be for you. Complete our online application in minutes and receive a decision in seconds (sometimes manual approval can take up to one business day). We have live representatives that can help with completing the application if there is any confusion.

The best part, after approval funds are in your account in one business day (excluding weekends and bank holidays). We deposit approved funds directly into your bank account so you don’t have to worry about making any extra trips to the bank and can feel free to use the cash however you deem necessary.

Is this expense necessary?

Again, this goes back to the “How will I use my money?” section above. Going deeper into how you will use the money and what warrants a “necessary” expense.

Think about what you’re spending as a need vs want. I need to fix my car because that’s how I get to and from work. I need to buy groceries so that myself and my family can have meals this week. Rather than using a single pay loan for an unnecessary purchase like a new pair of shoes, getting your hair done, or the latest iPhone.

‘Wants’ can wait until you either save the money or until your next paycheck, ‘needs’ are a purchase that must be made now.

Will I be able to pay back my loan?

The nature of payday loans goes back to their name, you pay back the loan on your payday. This is something to consider if you’re looking for a single pay loan, “Will I be able to pay back my loan with my next paycheck?”

Net Pay Advance offers three-day extensions if you need a little extra time to make a full payment. Also, customers that have a valid debit card on file can re-apply the same day they pay back a loan if necessary.

For customers in Texas, we offer installment loans which would give applicants the ability to pay back their balance over 180 days on every payday. This is a great solution if you’re looking for a higher loan amount and want to repay the loan over time, similar to traditional loans.

How much money do I need?

The best rule of thumb when taking out a payday loan is to only borrow as much money as you need. The borrowing fee is calculated based on how much money is being borrowed, so the less you borrow, the lower the fee.

This can help when it comes time to pay back the loan on your next paycheck and not put you in a situation where you’re struggling to make a payment.

Single pay lending is a great resource for people in California and Texas that are unable to pay for unexpected expenses that are bound to happen. If you or someone you know is in a situation where they don’t have the money at hand, have maxed out their credit cards and have an urgent expense, a payday loan is a quick, easy solution that can be taken care of by their next paycheck.

For more information about Net Pay Advance and lending in California and Texas, visit our website below or speak with a live representative by calling 888-942-3320.

https://netpayadvance.com/pages/FAQ.aspx

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