A payday loan is a short-term, unsecured or high interest loan. This loan is to be paid back by your next payday. Depending on where you live, you can borrow from $10 to $30 for every $100 that you borrow. Payday loans are available through storefront businesses or through online websites. Typically $1000 or less is a common limit whereby you can borrow money. The payday loans are paid in a single amount via cash, check, or electronically through a prepaid debit card.
Do you qualify for a loan? Also, you don’t have a perfect credit rating because you can be approved for a payday loan with less than good credit. The requirements for approval are if you are 18 years of age, a U.S. citizen, you have an income, and if you have a bank account. Applying for a payday loan is generally guaranteed for all persons. The only disqualification would be if you did not one or two of the above qualifying requirements.
Your loans can be repaid in two weeks, your next pay period, or depending on your lender, longer periods of time like 30 to 45 days. The application process can approve you almost immediately. Quite often your payday loan can be given to you the following day. This type of loan does not charge compound interest but instead charges fees based on an APR that will be higher than a traditional loan.
You don’t need a reason to apply for a payday loan. Expert Payday Loans will not ask you why you want to apply. Unlike a traditional loan, the money you require can be used to help pay medical bills, car loans, school loans, repairs or anything you need. The cash from a payday loan is yours to do with as you please, as long as you pay it off on time.
When you need cash in an emergency, a payday loan, when handled properly, can help in a pinch. To repay this loan, you pay it back in one lump sum via post-dated check or you have given the payday loan lender permission to withdraw it from your account. In some states, payday loans may be repaid in installments over a certain period of time.
Payday loan payments work best when you repay the loan as required. If you don’t your owed amount will grow including fees that will increase exponentially causing it to be very difficult to catch up with your payments. If you repay the loan with a pre-dated check, then your lender will still cash the check or electronically withdraw what you owe from your account.
The payday process is a short repayment loan but a credit background check is not required. This type of repayment loan helps to protect your credit score, unlike a regular loan which can take up to two years and greatly affect your credit rating especially if you default on your loan. With a payday loan, there is no need to provide any type of collateral security and there isn’t the threat of you losing your house, car or other valuables.