Payday Loans In A Nutshell
You may have heard about payday loans, but are unsure if they are the right choice for you. Used properly, payday loans can be a very convenient and useful way to acquire some much-needed cash. The key is to pay off the loan as soon as you can, avoiding delaying your payments. How can you avoid the pitfalls of a payday loan? There are several important facts about payday loans that you should know before you apply.
First, these kinds of loans have higher rates of interest than normal loans. They may not be as high as some claim, but if you may be in for a surprise if you are expecting low rates. The higher rates are one of the trade-offs for the advantages that these loans offer. Keep in mind that you will not have to pay the interest for an extended period, since these loans are designed to be short term. As long as you are diligent about paying off the loan, the higher interest rates should not pose a significant problem.
Second, payday loans have no restrictions about how you use the money. You can use the money for whatever you want, whether it is a medical emergency, a vehicle breakdown, or even just paying off the phone bill. Although it is wise to wait until a true need for cash, you can apply for the money for any reason, and use it for any purpose. Whether you are using it to pay for an appointment with the doctor or just to purchase holiday gifts, the only thing to remember is to pay off the loan as soon as you can.
Third, you can receive your cash very quickly. Usually the lender or financial company will have the requested cash in your bank account within one business day. You do not have to wait for a credit check, or provide collateral to apply for the loan. The whole process is automatic, as long as you meet the prerequisites on the online application form.
Fourth, the prerequisites are usually minimal. For instance, you must provide proof of residency, as well as proof of employment with your current company. Most companies also require that you meet or exceed a certain minimum paycheck amount. In addition, you must be 18 or older to apply.
Payday loans can be a very easy and convenient way to get extra cash for temporary needs. If used responsibly, they can be painless, but it is best to be prepared with foreknowledge about these kinds of loans. Simply pay off the loan on time, and you may find that the payday loan is the perfect solution.