Get Money When You Need It The Most!
Everything in this world revolves around money. Be it the day to day essentials, or the luxuries or home expenses, medical expenses, vacations, everything depends on one money source. That one money source could be in the form of your paycheck that you get at the end of every month. But, what if this source dries up even before you are able to meet up all the expenses, sometimes even unforeseen and unexpected expenses? Is there any way out for you to tide over the situation?
According to reports from credible sources, around 40% of the population does not have even a decent amount of savings. For these people, it is the payday check that takes care of all the expenses. Without any savings, even a small emergency money requirement certainly makes it a nightmare.
So, the alternative that is generally available is to opt for payday loans online, or through traditional sources like banks, etc. Since these institutions have strict requirements to be adhered to, and because they have special requirements that should be fulfilled for any person to get a loan, someone with bad credit won’t be able to get a loan from them.
But, there is no need to worry. There are alternatives that are present in the market, that help you tide over your money situation. And this alternative is called the Payday loan.
Read along to find out more on the Payday loans, the benefits of getting Payday loans online and how a payday loan works.
What is a Payday loan?
Payday loans are often short term loans. These loans are loans that are designed to help you tide over that awkward, rough money situation before your paycheck arrives. This is nothing but a kind of credit that you should repay back to the lending institution, as soon as you receive your next paycheck.
The most attractive feature of the payday loans is that you get fast cash. There is no credit check and it is an easy process. There are many situations in which payday loans can be very useful and help people in getting through the tough situation without much of a hassle.
Features of payday loans:
- Short term loans – usually for a period of two weeks or so.
- The loan amount is usually a modest amount, sometimes even less than $500.
- The loan amount can vary from $50 to $1000.
- There is no need to have a good credit history. Bad credit is also okay.
- Generally, easier approval process when compared to traditional banks.
- They are very popular, due to the ease of fast cash availability.
- The loan amount is due on the next payday.
- There can be renewals or rollovers of the payday loan, depending upon the payday loan lender.
- There is typically a cost that has to be paid to the payday loan lender, to get the payday loan.
What is the payday loan process?
It is a very simple process to get a payday loan. And hence, it has a huge popularity among many individuals. Payday loan lending is also a huge industry, according to sources.
The process is the same, for regular payday loans or payday loans online.
Once you decide that you require a payday loan, then the first step is to visit a payday loan lender. If you do this process online, then you will be getting a payday loans online. Once you finalize the lender, there is a small application process. This application is not like typical bank loan application. But, rather, it contains all your contact information, banking information as well as your employment information. You will also be required to give a few references of family or friends. This again may depend on the lender. There are a few payday loan lenders, who do not require references. The whole process is usually done in a manner ensuring the privacy of the individual taking a payday loan.
The following information is generally collected while filling up the application for a payday loans online.
- Personal information- Which includes, your full name, address, valid phone number, Valid Id number, Social Security number.
- Income information – Wherever applicable, employer information, income types, pay frequency, income amount, bank statement.
- Banking information – Such as Checking account number, routing number.
- Card information – If you choose to repay the payday loan using card payments, then this information is also collected.
Once this contact information is given to the payday loan lender, you are also supposed to write in the amount that you would want as a payday loan. So, you should write down a check for the amount that you would like to borrow from the payday loan lender, along with the fees or finance charges for processing this loan. If applying online, you will have to pledge by a certain date, the borrowed amount.
Once this process in completed, the lender deposits the money in the bank account or may give you a check for the amount that is needed as a loan. The term of the payday loans is usually 2 weeks. Until this time, the lender holds the postdated check that you have given the lending company. When the requisite time is up, the lending company either debits your account or cashes in the check that you gave them. (This also includes the finance charges for getting the payday loan).
So, the entire process is very simple. You get your money that you require in emergency situations until you get your paycheck. Once you get the paycheck, the money that you borrowed as a payday loan is cleared.
What if you are unable to pay back the payday loan?
In situations, when you cannot afford to pay back the lender, you can rollover this payday loan. This is like an extension. You can extend it for over a period of 14 days. But remember, you will have to pay the finance charges for this period too, separately. This is also called as the rollover of the payday loan or renewal of the payday loan.
Is there any difference between payday loans online and taking it from payday loan lending store?
The process of taking loans is the same. There are some companies, who conduct their businesses entirely online. Here, all the transactions happen online, which adds more convenience and comfort to the person borrowing the money. And, therefore there is a growing popularity of lenders who give payday loans online. There are also some lending companies, who run their business online as well as having a physical entity. Choosing the way you would want to take your payday loan is entirely up to you. But getting payday loans online is generally very convenient and hassle free.
How do you qualify for a payday loan?
The prerequisites of getting a payday loans online are quite often very simple and straightforward. The payday loan lending companies do not have a stringent list of eligible criteria. However, they do look into some minimum basic criteria. They are:
- Minimum Age requirement (18 years)
- Proof of income
- Valid identification which includes
- Active checking account
- A working phone number.
- A valid email address
As mentioned earlier, while applying for the payday loans online, you should give the following information, like the personal contact information, bank information, income information, card information etc.
What about bad credit? Is it Ok?
One of the best advantages of getting a payday loans online or through any payday loan lender is that your credit history is not checked. Most of the payday loan lenders are okay with bad credit.
Bad credit usually, always follows an individual, irrespective of the current financial situation. But, thankfully, there are many lenders who do not look into this aspect while giving a loan, especially a payday loan.
For most of the people, the biggest stumbling block while applying for a personal loan at a bank is the credit score. If it is too low, then the banks will charge a high rate of interest, even though they are eligible for a personal loan. And if individuals do not have a credit history, i.e. when they do not have a credit card, banks are wary of providing loans, as they do not know how well these individuals manage their debts or money. Either way, banks take their own precautions by charging higher levels of interest or do not give loans at all to individuals with bad credit or no credit history.
But payday loan lenders often do not check the credit history. And hence this is a great option for many individuals. Despite a bad credit history, the payday loan lenders check the current financial status as well as the ability to repay back the payday loan, based on the information that is provided while applying for the payday loans online.
So, if you have bad credit and you are applying for a payday loans online, then you need not worry. Most of the payday loan lenders rarely check your credit history. It is not a prerequisite. Because of this open-minded attitude of the lenders, the payday loans have become very popular. Coupled with the hassle free process and the fast cash that you can get, payday loans are slowly the preferred option, for anyone wanting that little extra amount to tide over some unexpected cash situation.
Who are the individuals who generally take a payday loan?
The number of people who take payday loans is really high. There is no need to be surprised when you hear around twelve million people opt for the payday loans, every year. People in the age group of 25 to 45 years are found to take up these loans. Also, individuals who are home renters; individuals without a four-year college degree, low-income group individuals etc. are seen to take up these payday loans quite frequently.
What are the benefits of payday loans online?
For anyone who can pay back the payday loans online on time, a payday loan as a form of cash advance is a very good option. Being a very easy and quick process, it is also hassle free. You can get the amount within a few hours of applying if everything that is required to be furnished is provided and done in the right manner.
And hence the payday loans have many advantages, some of which are highlighted here.
- Anyone who is 18 years of age and above, and who has a monthly salary and a checking account can get a payday loan easily.
- People with bad credit can also get a payday loan.
- The rate of approval for the payday loans is very high.
- It is a faster and easier process. The speed with which these payday loans are approved is quite fast. So, there is obviously not much waiting time. When compared to traditional loans, these are must faster. Traditional bank loans have a very lengthy process of approval, and quite often take many days for the loan to get processed and approved. But, with payday loans, these difficulties are not present.
- It is hassle free. It is a simple process too.
- Getting fast cash is convenient. Most of the application process happens online. SO there is no need to fix up an appointment to meet the lender or even a loan officer. By simply filling up the payday loan forms online and giving the required information, you can get a payday loans online easily.
- Any emergency situation can be easily tided over with fast cash through apayday Any kind of unexpected situation, like a carbreakdown, amedical emergency in the family or even rent payment can be accomplished without much struggle, through a payday loan.
- Payday loans can help you in protecting your credit ratings. By taking a payday loan, you can meet the financial obligations without getting a mark on your credit ratings.
- Payday loans help the young to be independent. They help them learn the way to balance the finances and also manage them well.
- Qualifying for a higher loan amount through payday loans becomes easier, once the payday loan lending company is assured of the prompt repayments and also by looking at your income levels.
- Individuals without savings can easily get payday loans.
- Individuals without credit cards can also get payday loans to tide over acertain unexpected financial crisis or even clear off past debts.
Things to consider while getting a payday loans online
When getting a payday loans online there are a few pointers that should be considered. They are as follows:
- Payday loans should be taken directly from a lender, online.
- You should have all the information, such as the contact details, address, email address and phone numbers of the lenders so that you can always contact them, whenever the need arises.
- Look for same day or instant approvals.
- Understand the fees involved in getting the payday loan.
- Understand the repayment terms and schedules. They can vary from lender to lender.
- You can take an extension of a loan, in the event that you are not able to repay back the loan on time. This is called renewal or rollover of the payday loan.
- Weigh your options wisely before opting for a payday loan.
Tips for using your payday loans effectively
Even though payday loans are often criticized for the interest rates, the way these small, short term loans help the people in need is really great. The payday loans can actually make people manage their finances well and stick to their budget in an efficient manner. So, in spite of an unexpected emergency, individuals can remain cash rich, by taking payday loans online, and get over the uncertain times.
When you take a payday loans online or at a store, take into consideration the following points, so that you can use your payday loan effectively.
- Consider the problem. What is the reason for you to take a payday loan?
- Pay attention to the details, especially the repayment terms and schedules.
- Go with a reputed payday loan lender.
Consider and think wisely about the reason for which you shall be taking a payday loan. Assess all parameters in detail. You should also go in for reputed payday loan lenders. Once you are sure about the reason of taking a payday loan, ensure that you get into the details pertaining to the repayment terms. Once all these are achieved, you can always be assured that you can use these short term loans to get over the financial situation. Being able to repay back will also help you in managing your future finances very well.
Finally, payday loans are very useful in many cases. They have helped many consumers tide over rough financial situations. By understanding their nature and using these payday loans responsibly, many consumers have managed to swim through some really tough times.
Due to the easy availability of the payday loans online, their popularity has been increasing, helping millions of people. Payday loans online are a great financial resource to many under banked customers as well as low-income groups.