Meet Your Emergency Expenses With A Payday Loan
Payday loans are short-term loans, which are unsecured in nature. You can avail these loans in between two paydays if you are struggling to pay your bills and cover other expenses. If there is an emergency and you do not have any other recourse to money, then a payday loan can serve as a viable solution. Generally these loans are not intended for long term as the debt is paid on your next payday. The loan amount that is granted through payday loan is low, and it ideally ranges in between hundred to thousand dollars. When you payback, you need to pay the principal amount, rate of interest and the fee for the service.
Requirement for approval
Both in the retail world as well as in the virtual world, there are lenders who provide these loans and each of these has their individual criteria for approving this loan. The process of application as well as that of approval is very easy. You need to have a steady source of income to avail this loan and the lenders verify documents related to the income source and employment status. It is also necessary to have saving accounts prior to the application for a payday loan. Though, few lenders give a grace period of one day to the borrowers regarding the savings account.
Sign a postdated check
Borrowers need to be eighteen years of age and a permanent resident of the state for applying to this loan. They make sure that the borrower has not filed for bankruptcy, nor are they intending to do so. To obtain a payday loan, you need to sign a postdated check, citing the full amount of the loan and also the rate of interest that is levied on the loan amount. On the next payday, which is also the maturity date of the loan, lenders are expected to pay the lender.
Consequences of late payment
If you fail the lender, then the letter redeems the check. In case, your account does not have sufficient fund or the check bounces back then a fee for bounced check will be levied on you. Thus, you need to pay the loan as well as an additional fee. If you fail to pay the loan then, the lenders might also charge high rate of interest. The online lenders verify the documents of the borrowers through fax or they go through the scanned documents. On approval of the loan, the amount gets transferred to their savings account. The amount gets electronically deducted from the account, on the maturity date.
Advantages of payday loans
Gamut of advantages are attached to the payday loans, and the first one being that the loan is easy to apply, and you can also get the loan easily in a short span of time. If you are concerned about your personal information being disclosed, then you can be sure of the security of information as they lending companies or the traditional lenders do not share your information with other agencies. Being a short-term loan, you can pay the amount easily without affecting your finances.
Easy to pay
Your income decides the loan that will be approved to you, and this also makes the payment of the loan easy and prevents the borrower from entering into the debt cycle. The lenders do not levy any restriction on the use of money so meeting other expenditures is easy. The institutes that are involved in payday loans work outside the working hours, unlike the traditional financial institutions, so you can avail the loan at any time of the day. You also need to know the Federal laws, as well as those applicable in your state. It protects you from paying high rate of interest, fees and also helps to secure your rights.