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A savings account payday loan is a payday loan where the lender accepts your savings account as your bank information in lieu of requiring you to provide standard checking account information. Because many payday lenders require you to either write a post dated check or give them access to a checking account that they can credit with the money and debit for the payments, finding a savings account payday loan can be a bit more difficult than finding a standard checking account payday loan. Still, it is possible to find the right loan with a little bit of research and know-how.
How Does a Savings Account Payday Loan Work?
Most standard payday loans require you to provide access to a checking account so they can ensure they are paid. The payday loan lender will be able to debit your checking account or cash your post dated check on the date that the loan is due, unless you go in and make some alternate form of payment.
With savings accounts, some banks do not permit crediting or debiting of checking accounts. This would mean the payday lender couldn’t deposit the money in your account, nor could they withdraw the
money to get paid. Therefore, your first step if you want to get a savings account payday loan is to ask your bank whether or not they allow such automatic debiting of the account.
If your bank will allow you to automatically have money credited and debited, make sure you get the account number, as the payday lender will need that to set up the payday loan. You then must find a payday lender who will allow you to do a savings account payday loan. A number of online payday lenders will work with you on such an arrangement, as well as some local lenders in your area. With a few phone calls to ask if the lender allows such a loan, you can find out exactly where to go to get your savings account payday loan.
After you have found a lender, you can apply for the loan. This generally involves bringing your account information, proof of your identity and any other required information such as pay stubs. The lender will then ask for your savings account information and you will have to give permission to debit your account for the amount borrowed plus costs and fees associated with the loan.
Category: Payday loans