A loan extension is an option which is usually offered by payday
loan companies. There are many reasons why a borrower or client
cannot meet his financial obligations with a payday lender.
There maybe a family emergency or the car suddenly needs
repairs. Such events are accommodated by lenders and this is why
there is the payday loan extension.
When a person obtains a payday loan, he must carefully read the
terms and conditions so that he will determine what to do when
he needs to file a payday loan extension. If information is not
found, the person must ask the customer service representative.
Asking does not mean that the client plans to get an extension.
But acquiring knowledge beforehand is always important, not only
in payday loans but in other aspects of life as well.
Payday lenders require that the filing of the extension should
be done on specific days or within a certain period of time.
Most lenders accept requests for loan extensions the day before
the loan is due. When a client is too negligent to request for a
loan extension, he will be charged with late fees. And this also
does not bode well for any future loan applications.
Most lenders allow their clients to request for a loan extension
online too. The procedure is usually made up of three simple
1. The client accesses his personal account by entering his
username and password 2. The client clicks a link or checks a
box indicating that he intends to request for a loan extension
3. The client enters the new due date of his payday loan.
The new due date is usually the date of the next payday. Some
lenders require that this new due date should be at least four
days away from the original due date. The new due date cannot be
the next day after the original date. Other lenders require that
the new due date should be less than eighteen days from the
original date. This means that the new date must not be a month
or two months away.
Once the request for extension is approved, the lender will only
debit the interest of the loan from the client's bank account.
This amount is usually stated in the terms and conditions sent
to the client.
The client, however, must be aware that there are limits to loan
extensions. Such limits are determined by the laws of the State.
This means that a client can only make as much as three loan
extensions. After that, when he is still unable to pay, he must
arrange for other ways of settling his loan.
Most lenders also accept partial payments. That is, when the
original loaned amount is $300, the client may pay the lender
$100 plus the agreed interest. This allows the client to have a
lesser amount and lesser interest to pay in the next payday.
Such arrangement is often advised and preferred by lenders.
About the author:
Peter Garant is writing articles about bad credit for his credit repair
kits blog and financial articles for his payday loan
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