Payday loans are really a great way to meet your urgent requirements. However, you need to plan the repayments in advance so that you do not miss on them by any chance as this may lead to serious implications and can see you getting into a vicious cycle of repayments with no relief.
There are times when you are in need of funds urgently. You do not have the time to wait for the processing that takes place at the banks and the financial institutions. Apart from this your demand for the money or the requirement is such that you can easily make the payment from your next paycheck and that is one of the reasons for not getting into the hassled documentation process that the banks follow. To top it all you may be a person with a bad credit score and may have been denied loans by the different financial institutions. At all the given scenarios you will be looking for a loan which hassle free, can be had within moments of application, has nothing to do with your credit score and the money should be made available to you at the earliest so that you can meet the purpose for which you need the same.
Well, Payday loans offer you just that you require. They are the easiest to get. These are also known as the cash advance loans. These loans are quick and all that is required in the form of documentation are your employment details and the salary slip. You need to be a citizen of US and above 18years of age to meet the minimum qualification criteria. These loans are offered for a period as short as 7-14 days and a maximum of 12 months.
Payday loans are very popular types of loan which has increased its borrowing by 166% since few years. These loans are a bit costly than others and is the last hope of getting finance who are rejected by other loan.
How to get a payday loan?
Payday loans have come up as a great help for those who want to avoid borrowing money from their friends and relatives. The amount required as loan is so small that one would never like to go to the banks which would take as much as 7-15 days in processing these loans. A lot of banks do not deal into the small loans because their processing costs do not allow them to do so. However, for the borrower the money means a lot at the time of the emergency and they would take the money from wherever it comes. With the payday loans getting online the situation has changed drastically.
The borrowers are finding the payday loans even more convenient. All that they require now is a PC with an internet connection and they can apply for the payday loans from the convenience of their home and at any time of the day. No need of any of the officials or the loan processing officers. It’s an online application, submission, minimum documentation, quick verification by the company and the immediate approval with the money being wired to your account.
When is a payday loan right for you?
Payday loans are not the kind of loans which you should take casually for any small needs. In fact these loans come with a heavy price, often associated with the high interest rates on them. Since they are the easiest to get approved for, people fall into their trap easily. Unless there is an emergency situation which you cannot meet with your regular income, you should not go for these loans. There can be some unexpected bills like the credit card debts or the mobile bills or the medical bills which you think will not be possible for you to clear in the months to come and you will have to pay a heavy price in the form of interest and the penalties, it makes sense taking a payday loan.
Payday loans can be really helpful in situations when you do not have cash to pay for the emergencies then, but you are sure that you can arrange the cash within a week or two to pay for the loans you take.
What is a payday loan?
Payday loans are those loans which are given to people for fulfilling their needs which rises in emergencies. They are good support for emergency but are very costly as they charge high interest rate. In payday loans lender directly take the amount from your account once you receive your paycheck. Payday loans are a good option if you are sure about repaying it next month but if in case you fail to repay the loan amount next month then the lender will charge you interest for the month and will shift your debt to next month, in short you have to pay the interest amount twice if you fail to repay on time.
Why are a lot of people against the payday loans?
Payday loans are generally not offered by the banks and the reputed financial institutions. These loans are more a function of the private lenders. The rules and the regulations binding these lenders are really not strict and it differs from one state to the other. Although the states have enacted laws to govern the operations of the payday lenders and to see to it that the rights of the customers are protected to the best levels , there are still a lot of cases of frauds and high interest rates complaints that keep surfacing about these lenders.
How much do they cost?
The kind of interest rates associated with the payday loans are not simply high, they are astronomical. Most of the people do the mistake of looking at the interest rates shown by the lenders and never get into the details of the APR. So while the interest rate quoted by the lenders is applicable for the short term of the loan, the APR shows the interest rates applicable annually. One can understand the kind of APR that the payday loans have just by looking at the fact that the credit card APR are 16%, the APR applicable on the payday loans are around 1300%.
Will I have a credit check?
It is not necessary for a lender to check credit score for giving payday loan but they usually check to see that how much risk is involved in lending money to that person as this will help them to decide how much interest rate they should charge. Lenders are only concerned with borrower’s employment status as they are liable for paying the loan amount which they are borrowing or not. They usually ask for a complete pay slip and employment record to make sure that person is trustworthy of lending money.
Payday loans are the most convenient and reliable type of loan for people with bad credit score. These loans are ideal for borrowers who need cash instantly as less formality are there in this loan and one person can get the loan amount directly into their account within 30 minutes of application. You just need to provide your pay slip and employment status to qualify for these loans.