Does it ever occur to you that some extra cash is necessary at the end of the month? The expenses which we pay from our basic salary does get fulfilled. It thus always becomes necessary to arrange for some extra funds. The demand and supply chain is never adequate to fulfil all the needs. Apart from that, there may be an urgent need for cash at the eleventh hour. This need can be of any nature, a medical emergency, a loan or some unprecedented expenditure. All these types of needs are to be looked after at that instant and cannot be left pending. For these type of urgent needs, fast cash loans are the best remedy. Fast cash loans are popularly known as payday loans or one-day loans because of their nature.
As these type of loans are becoming more and more famous among the working professionals, there are many types of rumours associated with it. There are false notions created by people who are not fully aware of it. These type of ideas gives a wrong notion for any new individual who wants to try it. It is very basic and fully understandable to have few doubts before starting any new thing. So is the case with the one-day loans. There are many questions and queries which are revolving in the mind of any individual before trying it. These queries are listed and all are answered in the following paragraphs. All the rudimentary doubts about the payday loans are addressed and if any other doubt persists, you can always contact the customer support of the respective loan granting agencies.
The few questions which come to the mind of every individual who first wants to try it are following:
1. What is payday loan?
Payday loans are small loans which are different from the conventional type of loans. These loans are not granted by public banks or financial institutions but are sanctioned by private financial firms. These loans are in small amounts, sometimes even less than the least amount of personal loan granted by the banks. The other very important difference from the conventional loan is that these loans are granted in a single day and the process is very swift and fast.
2. Who can apply for these loans?
It is a common perception of the people that the loans are only granted to rich or above middle class, working people. The banking institutions and financial agencies have created a sense in the lower working class that they are not a part of the economy. This creates a certain type of distrust and fear in the hearts of the people from the lower economic background. In case of the payday loans, there is no such economic disparity. Anyone from any background and class can easily apply for the payday loans. The other very attractive part of the payday loan is that it does not require a guarantor.
3. What about people with bad credit score?
The loan is applicable to any individual with a bad credit score and does not create any type of hindrance. This is because the loan is less in amount and credit score rating does not matter that much. In the recent times, the credit score has become very important criteria for sanctioning of the loan. The credit score helps to know a person’s assets and his/her liabilities. This gives us the lender a clear-cut idea of the person’s capacity to repay the borrowed loan. The credit score is a fair evaluation of the person’s assets, his /her liabilities and his /her income. Thus banks and financial institutions do not take up the risk of granting loans to people who do not have a good credit score. This is not the case with the payday loans as these are the loans for people with bad credit.
4. How to apply for payday loans?
The payday loan approval is the easiest and convenient process. This makes it very popular among the working professionals. In today’s world, no one has time to stand in long queues and arrange for large documentation. The banks and financial institutions emphasize a large amount of paperwork before the approval of the loan and thus do a background check on the applicant. When there is an urgent need for money, all these steps seem futile and time-consuming. In case of the one-day loans, the applicant just has to apply for the loan online. The website has a form which is to be duly filled by the applicant an then the loan is granted on the same day or the next day. There is no fuss of meeting or visiting the office and all work is done online.
5. How to repay the loans?
The one day loan comes with a very small processing fee and minimal interest charges which can be paid in the next month. Usually, people pay these loans in the next month from their salaries and thus it is popularly known as payday loans. The loan is small in amount and hence can be repaid in one or two instalments.