A payday loan is a small short term loan that you can use to meet your sudden unplanned expenses until your next payday. You can easily apply online and the decision to get you the funds is made right away. In many cases, the application process is completely online and the borrowed money can be directly transferred to your active checking account on the next business day as you make your application.
A payday loan is a kind of unsecured loan; hence it does not depend on security placement against the loan amount.
Generally, when you apply for the loan first time you can acquire any amount up to $300, depend upon your monthly salary. You will probably be approved the less you want to obtain, so it is advisable to acquire just what you require. When you have successfully repaid back loans with one specific organization they may then allow you to borrow an amount up to $1500 in subsequent loans.
Payday loans can provide a helpful solution for short term cash emergencies.
Who can apply for a Payday loan?
In order to qualify for a payday loan, you must be 18 years or above, employed with a monthly income ranges up to $1000, and must be a valid active checking bank account on his/her name.
Even if you have bad credit rating, you should still be able to apply for payday loans as long as you fulfill the above mention criteria.
How do you get a Payday loan?
Payday loans are easily available online, so there is no need of faxing or placing any documents. The application process is fast and very simple to complete. You will be asked to provide basic details such as your name, address, employment status, monthly income, when your next payday is, along with the amount you need to obtain and your active checking bank account details.
Once you submitted all the above details, wait for some time to hear back from the payday loan provider. They will email you with their decision whether you are eligible or not. Their decision whether to lend you money depending on the amount you want to acquire compared to the amount you earn monthly. Just obtain what you require, the less you acquire the more probable that your loan application will be accepted and the smaller the rate of interest you will add.
If your loan application was successfully approved, you will be sent by email your loan agreement showing the amount you borrowed, the repayment date/time and the rate of interest you need to pay on due date. Along with the loan agreement, you will also get loan conditions. These loan conditions should summarize your rights under the Consumer Credit Act 1974 along with information of repaying the loan amount, canceling the loan amount and the use of your personal information.
If you are happy to continue you sign online by giving details of your name and answering the simple security question. Then, email this back to payday loan provider and the amount will be directly transferred to the checking account that you mentioned in the loan application. The borrowed money can be deposited into your bank account on the same day you make the application, so this is a quick and proficient method of acquiring cash for short term.
How do I repay the loan?
You will need to pay back the borrowed amount with the interest rate accrued on the due date as determined in the loan agreement. The repayment date is usually your upcoming payday; hence it is called a payday loan. The reimbursement will be collected by the payday loan provider by charging from the bank account you mentioned in the application process.
Repayment over a longer period
The repayment time of payday loans may be extended if you end up in a position to be unable to fulfill all or part the amount due on the reimbursement date. If in case this happens, you should contact your loan provider as soon as possible and disclose your situation to them. They will then explain you about how you are extending your loan.
Regardless of the possibility that you are not ready to fully settle the repayment amount, it is good to pay off as much as possible on the reimbursement date. This will help you to keep the rates of interest to the minimum. A few organizations may charge you the extra fee for expanding your loan repayment date, so always check carefully the loan agreement before signing it.
Regulation of Payday Loan Companies
Properly managed payday loan organizations must hold to strict laws governing the finance business.
Similarly, with any financial product you apply for; it is important to check that the organization offering the loan is legitimately regulated. The organization shows its consumer credit license number within its loan conditions. In you are in any uncertainty regarding whether the payday loan company you are thinking about applying to be authorized, then you have all rights to contact these organizations for additional information. Properly regulated companies have their own recognized body to make any complaints you may have and you can be guaranteed that you won’t be liable for any unreasonable practices.
What are the advantages of payday loans?
Fast: One of the best advantages of getting payday loans is the fast process at which the money can be credited to you. The borrowed amount can be available in your bank account on the next business day. This can provide useful help if you are suffering from shortage of cash in the middle of the month and you need money urgently.
Simple: The loan application is simple and takes just a few minutes of yours to apply for a payday loan. Moreover, you don’t have to waste time in posting or faxing any lengthy document to the loan provider.
Bad Credit History: Payday loans are also easily available to bad credit people. This is because payday loan companies do not make their decisions based on borrower past credit history. As long as you fulfill all the criteria mentioned in the application, you have a good chance to take payday loans. For many people payday loans is the only solution for them to settle down their sudden financial needs in spite of having a bad credit history.
Use of the Loan Money: You don’t need to clarify the payday loan provider that how you utilize the loan amount. You can use the borrowed money for whatever reasons you have. You can use the loan amount to pay medical bills, electricity bills, car repair, on holiday, or even for a romantic weekend. The choice is yours and loan provider will not interfere in that.
No Upfront Costs: There is no upfront cost linked with payday loans. You don’t pay anything back until the due date.
Why does the APR appear high?
The APR connected to payday loans shows up at first glance to be high. This is exceptionally deceptive; however, there is a simple reason behind why this figure looks so high. APR is calculated over a whole year (365 days). However, payday loans are borrowed usually for days or weeks.
The APR calculation was not intended to apply to short term loans like payday loans. It was intended to apply to long term loans in presence for a year.
Many people don’t have reserve funds thus the convenience of a payday loan provides them quick money in times of sudden emergencies. If you require money instantly, cannot wait for the next payday and are certain that you can make the necessary repayment on the due date then this could be the ideal solution for you.
Overall, payday loans are suitable, simple to obtain and offer a feasible option for people who need cash immediately for whatever personal reasons they have.Sign Up Now