Valentine's Day is coming up soon, which means it's time to start looking for that perfect gift for your loved ones. Whether you're looking for a romantic gift for your partner or a fun, unique Valentine's Day gift for a Galentine's Day celebration, it never hurts to have a little extra cash.
The National Retail Federation (NRF) reported that last year was a record year for consumer spending on Valentine's day gifts. Over 55% of people celebrate Valentine's Day, and those who did, spent an average of $191 on gifts last year. Half of Valentine's Day spending last year went towards a gift for a spouse or romantic partner. The other half went towards everyone from classmates and teachers to coworkers and even pets.
If money is tight right now, but you still want to show your loved ones how much they mean to you, you might consider taking out a payday loan online. Even if you have a bad credit score, you may still have funding options. No matter your situation, we're here to help connect you with lenders who can provide you with a cash boost so you can surprise your loved ones with the perfect Valentine's Day gift.
Payday loans, or cash advances, as they're sometimes called, are offered through direct lenders. Direct payday lenders operate out of storefronts or online. These lenders offer short-term loans similar to personal loans you would find at a traditional financial institution such as a bank or credit union.
The most significant difference between a payday personal loan and a bank personal loan is clientele and price. Bank loans are considered the more favorable of the two for borrowers because they come at a lower overall cost. However, qualifying for these loans can be tricky. To be approved for a bank loan, the borrower must meet or exceed the bank's credit threshold. Those with a low credit score or who do not have a credit history likely won't qualify for a bank loan.
Those customers still need cash, though. That's where direct lenders come in. Direct lenders often work with customers who have low credit scores and approve customers that banks don't. Even if you don't qualify for a bank loan, you may still be eligible for a payday loan.
The usual term for a payday loan is two weeks or whenever the borrower receives their next paycheck--whichever comes first. Because the loan term is short, the funding comes at a higher interest rate or APR.
APR can be anywhere from 36% to 700%, depending on your state's regulations. Each state regulates payday loans and cash advances differently, and some states prohibit them altogether.
Before searching for a Valentine's Day payday loan, be sure to look up your state's payday lending laws to see how they are regulated.
When looking for funding for Valentine's Day gifts, going through a direct payday lender may be the perfect loan option for several reasons.
To apply for a Valentine's Day loan, you'll first need to conduct some research on lenders in your area or online. To save time, fill out our online request form and we will try to connect you with a lender.
Once you've identified a lender you want to work with, you will have to submit an application, along with some documents. If everything is in order and you are approved for a loan, the lender will then write up a loan agreement. Be sure that all the terms and conditions of the loan are in this written contract and that you read through them carefully. Once both you and the lender sign the contract, the agreement is legally binding. The lender will either deposit your funds in a checking account or load them onto a debit card. You're then free to use your money to buy your 2021 Valentine's Day wine, chocolate, and bouquet.
Before you can secure funding for the perfect Valentine's Day gift, though, you'll need to submit the required paperwork, including:
These are the very basic requirements you may need to meet for a Valentine's Day payday loan. However, keep in mind that some lenders will have their own requirements in addition. For example, some lenders require the applicant to be at least 19 years old or have an open bank account. In this case, you would need to provide an I.D. proving you are at least 19 as well as a bank account number and routing number.
Before withdrawing a cash advance to buy gifts like chocolate, wine, or another sweet treat, it's important to understand how repayment works. Typically, payday loans are due within two weeks of whenever the borrower receives the funds. The lender will obtain repayment in one of two ways: either they will ask for a post-dated check in the loan amount, which will be cashed on the due date, or they will withdraw repayment directly from the account used to deposit the loan funds.
If the due date arrives and you find you can't repay the loan, your lender may be able to give you a rollover. A rollover delays payment by another term (usually two weeks). However, keep in mind that a rollover means you'll be paying double in interest, making this a very expensive option.
If you know you won't be able to repay the loan within the original term of two weeks, you may want to consider a small installment loan. Installment loans are paid off in small monthly payments rather than in one large lump sum. Installment loans can reach up to a year in term. You may also be able to get a larger amount of money through an installment loan than you could through a regular payday loan, making this a good option for those planning to buy an expensive Valentine gift. Of course, an installment plan means you'll also be paying more in interest because the term is longer than a regular payday loan.
Payday loans can be used to cover costs once in a while, but they shouldn't become your main source of funding. If you're making a one-time purchase like gifts for Valentine's Day, a payday loan may be a viable option. However, you shouldn't become reliant on payday loans. Here are some tips for how to borrow money through a cash advance responsibly.
We hope you have an excellent Valentine's Day and that you can find a great gift for your sweetheart.