Today, the payday loan is known to be the fastest and the easy alternative for obtaining a cash advance in cases of emergencies prior to your next payday. But obtaining these loans and their repayments encompass few crucial aspects. Let’s understand how these loans serve as a tool to give you a stress-free life.
What is a Payday Loan?
The loan is called by many names such as Payday Cash Loan, Cash Advance and Paycheck loan. These are unsecured loans that can be easily obtained and can be used for meeting your emergency financial needs and also in case of bad credit.
It is paid back through your next paycheck on your payday and can be easily availed online. In this way, these are the shortest tenure loans as compared to the others in the market. The major benefit of this loan is that they are as a matter of fact payday loans no credit check.
- Sometimes we come across a situation wherein we require cash badly but feel like our hands are tied up as our payday is many days away.
- In such cases, we have to cancel or change our plan of buying something or go for a high-interest credit card loan to fulfill the obligation.
- It could be any kind of requirement such as to pay up emergency medical bills, your child’s school fees or any other financial obligation such as to avoid bouncing of your issued checks.
- In such difficult times, payday loans come in extremely handy. Thus, you can utilize this cash advance for any given purpose.
- There is no restriction implied on the use of these loans.
The best part about payday loans is that you can obtain it even if your credit rating is not that great. Another best thing regarding payday loans is that obtaining a cash advance will not affect your credit rating. The only eligibility required for payday loans is that you need to have a running salary account and a regular job.
Applying for a Payday Loan?
You can apply for these loans online using an Internet connection. You need to supply certain basic information such as your Name, Address, and your employer details. Certain companies offering payday loans might ask for your Bank Statement. The documents required by these companies for loans are very less as compared to other types of loans. It can be availed only if you are a salaried person with a fixed monthly income and also a valid bank account. The borrowers who fulfil these requirements only can apply for these loans.
To apply for these loans you do not have to risk any of your assets since these are unsecured loans depending on your repayment ability and requirements.
Fee & Charges
Prior to applying for payday loans, it is wise to scan many lenders for the fees they charge. Some companies might offer loans without paying any fee for the initial week.
Loan Amount Received
The amount of payday depends and varies according to the borrower’s repayment capacity.
Generally, a loan advance is to be paid back on or before your following payday. Thus, the maximum duration of can be up to 30 days. But in certain companies that have a flexible schedule payday loans could be extended until the next payday. This extension however, will be at a particular price.
How long does it take to get it?
Payday loans are much convenient to receive and that too in less time than other loans. Post application you will receive a telephone call from the lender. After finishing basic formalities, the loaned cash will be credited to your salary account within the next business day.
Before you go for a payday loan, please keep in mind that the rate of interest charged for these loans is considerably higher. Extending the duration of the payment can only make the fees charged higher. The loans should be prudently used and only for fulfilling financial emergencies that can never be avoided. Please keep in mind that availing a cash advance loan many times could upset your monthly budget and you might find it tough to pay off the loan.