Des Moines, IA Cash Advance Loans
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Advantages of Taking Out a Payday Loan in Des Moines
Payday loans can help Des Moines residents who are dealing with unexpected cash shortages or are under financial strain. Payday loans are cash-advances that borrowers pay back at the time of their next paycheck. Potential borrowers can apply online, and approved applicants often have funds in their accounts within a few business days. Loan amounts can range from $100 up to $5,000, depending on a borrower’s next paycheck amount.
How to Use Payday Loans in Des Moine
Most Americans are unprepared for a financial emergency. Indeed, more than half (53%) of American households do not have an emergency savings account, according to the AARP. Payday loans and cash advances can provide a cushion for Des Moines residents who run out of cash before their next payday and have to mitigate unexpected expenses. Some common uses for payday loans include:
- Covering medical expenses, prescriptions, and over-the-counter medication costs
- Paying for home or vehicle repairs
- Managing living expenses between paydays
- Buying a major appliance or other big-ticket items
- Funding unexpected educational expenses
Applying for a Payday Loan
People applying for a payday loan in Iowa can be done at a store-front lender, or online. While requirements differ between lenders, most will request the following information from applicants:
- Proof of age and address
- Bank account, employer, and income information
- Social Security number
- Information about any alternative income that may lower the borrower's debt-to-income ratio
Residents with poor credit or who receive alternative forms of income such as government benefits, alimony, child support, self-employment income, royalties, and income from investments are still eligible to apply for a payday loan. Payday loan approval is based on income and debt-to-income ratio, and credit rating, but considerations are less strict than those affiliated with conventional loans from banks or credit unions.
Some lenders allow borrowers to write a postdated check for their loan amounts. In such cases, lenders may debit the borrower's bank account for the loan principal plus interest charges or request that borrowers make arrangements to pay off the loan with cash and reclaim the postdated check after.
What are the Risks of Taking out Payday Loans in Des Moine?
Payday loans in Des Moines, IA, carry high-interest rates and steep rollover fees. Borrowers who are unable to repay their loans often find themselves taking out further loans to pay back their original debts. Consumers who fall into this pattern may find themselves in a cycle of liability that makes it harder to become financially stable. Potential borrowers should be aware that payday loans are not long-term financing options and should assess their ability to afford one before applying.