Using a Prepaid Card to Pay Off a Payday Loan

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If you are having a hard time paying back a payday loan, you can use a prepaid card to pay it off. Many companies offer these cards and they can be a convenient way to get a little extra cash. However, there are some things you should know about payday loans before applying.

Prepaid payday loan cards

Prepaid payday loan cards are not your typical gift cards. This card can be dangerous if you do not know how to use it wisely. Prepaid cash advance cards work by allowing you to obtain cash instantly by writing a postdated check for your next payday or giving an equivalent online authorization. These cards are issued by payday loan companies that make money by making transactions easier for their customers. Millions of Americans do not have a bank account, so they can use these cards as a way to get their cash in a short amount of time.

Prepaid credit card lenders will provide you with a PIN and other standard security checks. Some even have their own online portals for easy fund management. If you are planning to make online purchases, it is best to carry your identification on you at all times. Many vendors require an ID check before giving you money. This can be problematic for people who want to avoid this hassle.

Getting payday loans from an online lender

If you have trouble paying your bills online, you might be considering taking out a payday loan. These short-term loans are great for emergencies, but many people also use them to cover recurring monthly bills. If you run out of money before your next payday, you might have to pay late fees. The good news is that these loans can often be rolled over for up to two weeks. However, you may not be able to do this if you have bad credit.

The downside of this solution is that the cost of borrowing can increase astronomically within a short period of time. Many cash-strapped borrowers will return to the lender saying that they cannot afford to repay the loan. While this is bad news for the borrower, lenders are more than willing to work with these borrowers to help solve their problems. If you are concerned about your credit score, you may be able to negotiate an extended repayment period with the lender.

Protecting yourself from payday loans

If you’re having trouble paying your payday loan, it may be a good idea to protect yourself by ensuring your identity remains secure. Payday loans can be fraudulently taken out in your name, against your debit card, or against your bank account. If you can’t make the repayments, consider alternative methods such as a credit union loan, an overdraft, or a Social Fund. Check the terms and conditions of the loan before signing up and be sure to understand your rights.

If you’re unsure how to protect yourself, you can always contact the Consumer Financial Protection Bureau (CFPB) to report the problem. They will work with your lender, bank, and state attorney general to help you resolve the problem. If you notice that your bank account has been withdrawn without your knowledge, you have 30 days to notify your bank. You can use a sample letter provided by the CFPB to do this. However, it’s important to understand that stopping the automatic bank withdrawal from your bank account does not mean you don’t have to repay the loan. You can make alternative arrangements to make the payment, or seek assistance from the CFPB.