Payday loans offer individuals a source of cash or funds for an unexpected expense. A payday loan is a type of short-term loan that can be used for an emergency. These loans have many benefits if you are in need of extra money.
Easy to Qualify
Most types of payday loans have minimum requirement that need to be met. Individuals will need to be at least 18 years of age, are currently employed, and have a valid checking account. Some lenders often have a minimum monthly income requirement, such as $1000. You will also use your checking account to make required payments to the lender.
Many types of payday lenders can be found on the Internet. This means that you can be online at home, at work, or anywhere you have a connection to the Internet. If you are on the go, then you can use your laptop computer or a web-enabled mobile phone.
The application for a payday loan is easy to complete as it is a simple online form. You need to provide personal information and banking information. Personal information will include your name, a non-PO box address, phone number, and email address. Banking information includes the routing number for a checking account. You will also need to provide proof of income. This is typically met by a check stub or a call to your employer.
Approval of an application if often done on the day it is submitted or within 24 hours. This will depend on the time the application is completed. Money is typically deposited into your account within an hour after the application has been accepted.
Maintains Credit Rating
Lenders for payday loans do not use your credit score as a factor for eligibility. This means that this is a great option when an individual is denied a loan from a traditional lender. If you fail to make a required payment for the loan, then your credit rating will be negatively affected.
Payday loans require no collateral. This is an unsecured loan that you are required to repay. The loan is an agreement that you will repay the amount to the lender. If you do not repay the loan in full, then you will not be able to obtain another payday loan.
The terms of a loan will dictate the time that is available for repayment. You can have a week or up to a month to repay the loan. Repayment of the loan in full is required before obtaining another loan.
Lenders providing payday loans will assess a higher interest rate than a traditional lender. This is due to not using a credit score and not securing the loan. However, many states have a limit on the interest rate that can be assessed to the borrower.
You are not restricted on the use of a payday loan. The money received from a payday loan is available for anything you need.
Author’s Bio: Sidra is known for writing informative articles on finance and related issues. To get answers to further queries visit the website PayDayLoans.org