The Inside Scoop on Payday Loans
A payday loan is an unsecured loan not dependent on collateral such as a car. They are short term loans meant to be paid back in a few days usually on your next payday. You can apply online and the money loaned can be credited into your bank account on the same day.
The most common amount lent for first time borrowers is $300 or more maybe depending on your income. You are more likely to be approved the less you want to borrow so it is advisable to borrow only what you need. Like other lenders once you have established yourself you can borrow a higher amount if needed the next time.
Who Can Apply for a Payday Loan?
To be eligible for a payday loan you must be over 18 and employed for at least three months. You must also have a bank account with a valid debit card. Even if you have bad credit history you should still be able to obtain a payday loan if you fulfill the above criteria.
Best Way to Repay The Loan
You will need to repay the loan amount plus interest on the date specified in the loan agreement. The repayment date is usually your payday hence the name payday loan. The lender usually collects your payment by debiting your bank account once your pay is deposited.
Loan Extension Requests
Payday loans may be extended if you find yourself in a position to be unable to satisfy all of it on the repayment date. If this happens it is recommended you contact the lender and explain your circumstances so they can explain your options.
What are the Benefits of a Payday Loan?
Approval Rate: Most people like how easy it is to get the money they need. The money you need can be available to you in your bank account the same day you apply. This can be very helpful if you have a short-term cash flow problem and need money right now.
Applying for a payday loan is quick and easy and only takes a few minutes to fill out the form without wasting time going back and forth with faxes or emails.
Poor Credit History: Payday loans are available to people with poor credit. This is because payday loan companies do not make their decision to lend solely based on credit history. If you meet the application criteria you have a good chance of getting the money.
The reason payday loan businesses seem to be everywhere is because they can meet the needs of people who do not meet the criteria of the banks plus banks will not lend small amounts for any reason.
Many people do not have access to credit cards or traditional loans so the convenience of a payday provides options you cannot get elsewhere.
Overall payday loans are convenient easy to access and offer a viable option when you need money quickly.