The Basics of Payday Loans
While getting a payday loan is fast and easy, there are things that you should know before you even begin looking for a lender. There are many reasons for this, but the most important are that being organized with what you need will help the process go even faster, and knowing ahead of time what to expect can help detour nasty surprises. So what are the basic facts you need to know about taking out a payday loan?
What Will the Lender Need From You?
While it is true that payday loans are extremely easy to get approved for, they do not simply hand them out to everyone off the street. There are a very few basic requirements that must be met in order to be eligible for a payday loan.
For example, a borrower must be of legal age. This is 18 years old or older. In order for someone underage to be approved, they must have a legal parent or guardian with them. A borrower must also be employed and be able to prove employment. This is because the whole premise of a payday loan is that you are receiving an advance on your next paycheck, which you will pay back when you get paid. If there is no job, there is no paycheck to advance.
There may also be a requirement to have a bank accounting or for a credit check, but most often with payday loans these are not things that would keep you from getting the loan. They may simply help determine the interest rate and other terms.
What Will You Get From Them?
The short answer is the cash you need, fast. The long answer is you will get a short term, smaller amount loan that can be used for whatever you need. Approval is most often same day or as soon as the next business day. The funds will be received in many cases the same day if you are visiting the lender’s physical location, or they may be direct deposited into your bank account in anywhere from 24 to 48 hours. Either way most often the funds are received quickly and easily.
The Good, and the Not So Much
Payday loans are fast, easy to qualify for, and they offer a smooth application and approval process. They are also a secure way to get the money you need for the unexpected expenses that pop up for all of us. However, because of their nature, they may carry hefty interest rates. As long as you know this going into it, they can still be a very useful tool. Simply use the time until your next pay check to raise the money needed. This can be done by asking a relative, selling something, or taking a temporary second job. The point is, you will have the time thanks to the ease and security of the payday loan.