Need a New Car? Use a Payday Loan for Auto Loans


If you live and work near public transportation, you probably don?t need to worry about your car. But if you are a suburbanite, or live in a small town without public transportation, your car is your ticket to freedom and your ride to work. Living without one can mean the difference between a job and unemployment.

If your car is on its last legs, you may be thinking about getting another more reliable vehicle. But the down payment and high interest rates are big stumbling blocks for many of us in these tough economic times. Have you considered using a payday loan for your auto loan?

If your credit has flaws, and whose doesn?t, getting a loan to buy a used car is going to be tough. Lenders will want higher interest rates or larger down payments. A payday loan as part of your auto loan package just might mean the difference between getting the car or not. The payday loan can be applied toward the down payment to reduce your monthly payments and may also result in lower interest rates.

Payday loans are short-term, unsecured loans against your next paycheck. There is no need for collateral. If you find yourself in a position where you might not have a next paycheck if you don?t have a car, you definitely want to consider using a payday loan to get that auto loan.

To apply for a payday loan, you just have to complete a short online application and provide basic information. Because the money will be deposited into your checking account, you will have to provide your bank routing number and account number. Once the money is deposited, usually within 24 hours, you can use your payday loan for your auto loan immediately.

You are eligible for a payday loan if you are an American citizen over the age of 18, have a reliable income of at least $1000 a month, and have a checking account. Income sources include jobs, Social Security, disability payments, and alimony. You may have to provide proof of income by faxing a current pay stub, statement of benefits, or divorce papers showing proof of alimony. Depending on your income, you will be able to borrow up to $1500.

You will most likely not be able to get a payday loan to use for your auto loan if you have recently filed bankruptcy, make less than $1000 per month, or have had your job or checking account less than six months. You will not be able to get a loan if you have outstanding payday loans or if you have repaid a loan within the last week or so. You are not eligible if you are active duty military; however, you can apply for assistance through your branch of the service.

A payday loan for an auto loan has several repayment options. Most people elect to pay the loan in full, along with any interest and fees, when they get paid. If you choose this option, the money will be automatically deducted from your checking account on your payday. This is the best option and saves you the most money in interest and fees.

If you can?t pay in full, another option is to repay the payday loan for your auto loan in installments. To do this, pay a portion of the balance owed, plus interest and fees, and roll the loan over into the next pay period. You may be able to do this several times. This must be arranged with your lender before the loan is due, so be sure to contact them at least 48 hours in advance of your due date.

The other option is to just pay interest and fees and roll the entire loan into a new loan. Because this option is the most expensive, some states no longer allow this. Check with your lender if you feel this is the way you need to go.

When you apply for a payday loan for an auto loan, you will be asked to provide references. These people will be called. You will also be asked to verify the information in your application, and your employer may be contacted to verify employment. Your employer will not be told the purpose of the call and will only be asked to verify length of employment. Your checking account may also be checked to make sure you have had it for a specified length of time and that you have made deposits on a regular basis from your paycheck.

Payday loans are not meant to be used for everyday expenses. However, if you need to get a payday loan to help with an auto loan, and it could mean the difference between employment and unemployment, by all means consider this as an option.