Advice

Is a Payday Loan right for you?

Payday loans have become increasingly popular for a number of reasons, and it’s important that you take the time to look into them before deciding whether or not whether or not you should apply for one. These loans can be incredibly helpful for a lot of people, and they are fairly easy to get. The more time you take to learn about payday loans, the better off you are going to be in the end.

Emergency Expenses

Do you have some sort of emergency expense that you need to pay for but don’t have the cash to cover it? If you have an important home repair, car repair or even a medical bill that needs to be paid right away, a payday loan could help you in a big way. These loans are great for sudden and important expenses, simply because you will be able to get the money you need right away if you are approved. The fact is that these kinds of expenses come up in life from time to time, but not everyone has the money for them.

Your Credit

While you may have been turned down for loans in the past due to your credit score, you will be happy to know that even those with poor credit can get approved for a payday loan. There is never any guarantee that you will get approved, but your credit may not be as much of an obstacle as you might think. Depending on what exactly your credit is like, you could very well get a payday loan. Most lenders will take a look at your credit score when deciding whether or not to approve your application, but the requirements are typically more lax than with personal loans.

Borrowing Amount

If you need to borrow anywhere from $200 to $2,000, a payday loan could be the right decision for you. The maximum amount of money that you can borrow with a payday loan is going to depend on a few different factors, including the lender you choose, where you live and what your credit is like. If you need to cover a car or home repair, you will most likely be able to get what you need.

Payday Loan Requirements

There are some basic requirements that you will have to meet when it comes to getting a payday loan, and you will definitely need to know what they are.
Some of these requirements include:

You must be at least 18 years of age
You must be a legal citizen of the country
You must have an active checking account
Adequate income for the amount you want to borrow

You will absolutely need to meet all of the requirements listed above or you will not get your payday loan application approved.

Interest Rate

The interest rate that you are going to pay on your loan will depend on a number of things, including what your credit is like, where you live and the lender you choose. Some people pay a higher interest rate than others, and your credit score will have a big impact on that. The better your credit is, the lower your interest rate is going to be.

Benefits of Payday Loans

You will quickly discover that there are lots of benefits associated with getting a payday loan, including the fact that you will be able to get your money quickly if you are approved. Most people who are approved for one of these loans get their money within 24-48 hours at the latest. It’s also important to remember that you can use the money you get from your loan for anything you want, and your lender won’t ask you any questions about how you plan on using it.

Conclusion

Payday loans have helped many people over the years with paying off important expenses, but they are not right for everyone. It is imperative that you take the time to consider all of the things in this article so you will be able to make the right decision. In the end you will be glad you took the time to do this because of how it will benefit you overall.

Payday Loans

Most Important things to consider about Payday Loans

There are many important things that you will want to consider about payday loans before actually getting one. A lot of people have benefited from these loans, but they aren’t for everyone. The more you learn about payday loans, the less likely you will be to end up getting a raw deal with a lender. If you have some sort of sudden expense that has come up but you don’t have the money to pay it, this type of loan can be of great assistance. This article will help you get the information you need to make the right decision for yourself.

You should have a short-term need

Payday loans are for people with short-term needs, so you will want to keep that in mind. You don’t want to take out a payday loan as a means of covering long term expenses, but rather single expenses like a car repair or medical bill. The point is that your need should be short-term if you are going to get a payday loan. The loan that you take out will need to be paid back within about 2 weeks.

Plan ahead

The payday loan that you get is going to come with a flat lending fee with the amount that needs to be repaid. It is important that you figure out exactly how much you are going to be charged for your loan so you will know ahead of time. By doing this you will be able to decrease your chances of not paying off the loan on time. A lot of people rush into getting a payday loan, and as a result they have difficulty paying it off. The total amount that you pay for your loan should be in writing in the contract you sign.

Make sure you can pay off the loan by the due date

The last thing you want is to be late on paying back your payday loan; because you will likely end up spending a lot more than you would have initially. You will definitely want to know the exact date that the loan is due to be paid back by so you don’t miss it. Being even one day late on your loan can mean spending a lot of extra money in penalty fees.

Check to see if your lender with honour your source of income

Depending on the type of job you have, not all lenders may honour your source of income. It is important that you check with each lender to see if there are going to be any problems if you are only working part time or if you are on disability or social security. Not all lenders will honour all different sources of income, so you will need to keep that in mind. This is something that you will want to find out early on.
Have proof of income on hand

You will also want to make a point of having proof of your income on hand to speed up the whole process. The lender that you apply with will almost certainly require proof of your income, including pay stubs and/or bank statements. You should absolutely have all of this information ready to go.

Be ready to verify your current bank account

Another part of getting approved for a payday loan is verifying your bank account. You will need to provide proof that you do in fact have an active checking account at a bank or credit union. Those who do not have an active checking account will not be approved for a payday loan, so you will want to remember this as well.

While a payday loan can definitely help you when you are in a tough financial situation, it’s still important for you to take all of the above things into consideration. As long as you have all of the facts about payday loans beforehand, you should be able to get exactly what you need without any problems at all. Each year millions of people get payday loans, and it is very likely that you will be able to benefit from this type of loan when you are in a tight financial spot.