If you are facing a shortfall in your finances this month then you maybe looking at payday loans to see you through. This form of lending has grown in popularity as well as availability in recent years making them accessible to just about anyone.
As long as you have a regular income and a valid bank account then you could apply for a payday loan.
The concept of payday loans is rather like an advance on your wages. You are lent a sum of money (typically between $100 and $1500) which is then repaid from your next pay check. Lending terms are usually between 14 and 31 days although some lenders will grant longer terms and if used responsibly a payday loan can provide the ideal solution to short-term financial issues.
Other borrowing options would usually include a bank over draft or credit card, but this form of borrowing can be more expensive and incur high fees and charges.
Banks are usually not inclined to lend small loan amounts either, especially if you only need to borrow the money to meet bills or expenses.
Payday loans however have no limit on what you can use the money for and neither do they require a lengthy application process or the faxing of various documents to prove eligibility.
Another feature of payday loans is the lack of a credit check which means that even those with poor credit histories can be considered for a loan. No credit checks also speeds up the application process meaning that once you have filled out the short form on a lenders website, the loan can be considered, approved and the money transferred to your bank within 24 hours. This is an ideal solution if you need the money in a hurry.
To be eligible for a payday loan you need to be over 18 years of age and in receipt of a regular income. You will also need to have a valid checking account into which the loan can be paid. Some lenders will require evidence of income and some do carry out a basic credit check when considering an application.
When it comes to repaying the loan you need to ensure you have the money in place by the due date and that you will still have sufficient funds available to live on once the loan has been repaid. Some lenders will require a post dated check for the loan amount, plus interest, while others will ask for permission to debit your bank account on the due date.
The interest rates on payday loans are high but it should be remembered that these rates are quoted on an annual basis and the actual amount of interest you pay over the lifetime of the loan will not be very expensive.
However, you should remember that not paying the loan back when agreed or extending the term over a longer period will make it more expensive and could incur additional fees and charges.
I may repeat this over and over again, but these loans have several things to consider, thus we must be aware of that. As to who are welcome to apply for these loans, Everybody are welcome as long as they fulfill the basic requirements and they follow certain loan protocols.