What are Payday Loans?
There’s no doubt that at some point you’ve seen a commercial on TV, or heard someone mention payday loans. There is a lot of talk about the benefits of payday loans and also some negatives involved with them. In order to clear up the misconceptions and give you a clear understanding of what payday loans are and determine whether or not they are the right option for you.
Payday loans are small short term loans that are to be paid back on the borrower’s next payday. They are similar to cash advances, and other similar loans which allow borrower’s to get cash quickly and for small amounts. With the state of the economy, banks are approving less and less loans for people, especially if they have bad credit. This has helped make payday loans increasingly popular because they are much easier to get approved for than traditional loans from banks.
How to get Payday Loans
As previously mentioned, payday loans are popular because they are fairly easy to be approved for because of less strict qualifications generally. Usually payday loans require the borrower to be employed, be at least 18 years old, and have a certain minimum income that’s determined by the lender. You’ll have to check with your individual lender in order to figure out their eligibility requirements.
The longer you’re employed the better you look to potential lenders. You’ll usually have to supply proof of income to lenders in order to be approved, so having 3 months worth of paystubs to show lenders your stream of income can really help your chances of being approved for your payday loan.
The first step to getting your payday loan will be to find a lender. This is easier to do now more than ever due to the increasing amount of online lenders. You of course still have the option of finding a local lender that offers payday loans. However, using online lenders has become increasingly popular because you can get the cash you need right away from the comfort of your own home. Simply fill out the application online and enter the appropriate information and when approved, you can usually have the funds deposited into your checking account within 24 hours. Also, you will generally be able to pay back the loan online as well, just like all online bills. This makes the entire process convenient and simple, even for the non-computer savvy.
Who Payday Loans Can Help
Payday loans are used for a variety of reasons. If you have a bill due and you want to pay it off quickly, you can apply for your payday loan and get the money the same day in order to pay the bill on time to avoid damaging your credit with late payments. Simply pay off the payday loan with your next paycheck to avoid any unnecessary fees.
One of the most popular uses of payday loans is for people with bad credit. Since people with bad credit have issues to getting loans from banks, payday loans provide a way for them to get cash they otherwise would not have. Payday loans don’t have as strict of guidelines for being approved as traditional personal loans. Even people with awful credit have the ability to be approved for payday loans as long as they meet the basic criteria from the lenders.
Payday loans are a great way to get money you need without having to deal with background checks and credit checks. They provide a fast and convenient alternative to personal loans for people looking to get cash as soon as possible.