The Inside Scoop on Payday Loans
A payday loan is an unsecured loan not dependent on collateral such as a car. It is considered a small short-term loan to be repaid on your next payday. Most of these loans can be applied for online and when approved the money is usually deposited into your bank account.
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. Once you have successfully repaid your loan they may then offer to lend you more in subsequent loans.
Who Can Apply for a Payday Loan?
Eligibility for a payday loan is that you have been employed for at least three months and you are 18 or older. You must also have a valid debit card for your bank account. 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
According to the contract you repay the principle plus interest on the date agreed upon. 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.
Bad Credit: These types of loans are designed for people with poor credit. Reason being the payday loan firms will lend money based on you meeting their lower requirements. As long as you meet their needs they can give you what you want.
For many people a payday loan may be the only way they are able to get credit especially in current times where many lenders are unwilling to provide loans never mind to a person with poor credit.
There are a lot of good people who do not have a credit card or established credit so they use payday loan companies to help get them through a tough time.
Overall payday loans are convenient easy to access and offer a viable option when you need money quickly.