Payday loans are constantly gaining more and more popular among everyday consumers due to increasing financial pressure from the nation’s economy. People find it convenient to be able to borrow small amounts of money to cover short-term expenses without the hassle normally associated with going to a bank and applying for a loan. Payday loans are quick and simple to obtain, and you can almost always have your money within 24 hours after filling out an application.
Unlike traditional banks which do extensive credit checks and thoroughly analyze all of your employment, asset, and income data, payday lenders are much less strict and require you to meet only a small list of criteria to ensure you are likely to pay back your loan. If you’re considering a payday loan, here are a few things to think about and a few criteria you will have to meet.
Just How Much Money Do You Need?
This is the most basic question which you will need to answer before seriously thinking about applying for a payday loan. You need to figure out how much money you need to prevent any financial hardships from arising, and also how long it will take to pay that money back. Wise borrowers only take the amount needed and ensure that they pay it back as quickly as possible to avoid unneeded fees from interest and also make sure loans are available when needed the next time.
What Requirements Do Payday Lenders Have?
Payday lenders are each able to specify the rules or regulations that their individual business has in regards to loans, but there is a list of the most common eligibility requirements. Some things to consider are:
- You must be a US Resident – This ensures that you can legally into a binding agreement with the payday lender.
- Need to Be at Least 18 – Minors are not allowed to enter into a financial agreement on their own without the consent and co-signing from a parent or legal guardian.
- You’ve got to Have a Job – Lenders will not loan any money to someone who they do not think will be able to repay the funds to them on time. If you don’t have a job or a verifiable source of income, obtaining a payday loan will be quite difficult.
- You Need a Checking Account – You must have a US-based checking account for the lender to deposit the funds into it.
Find a Legitimate Company
A dishonest or unethical payday lender can often put you further in debt with altered terms or added fees. Make sure that you don’t get ripped off by a fraudulent payday loan company. Do your homework, check the reviews of companies you are considering and ask your friends and family if they have taken payday loans from any reputable company.
Do some Market Research
This task is much easier than it sounds and can ensure you get the best deal possible on your payday loans. Choose 5-6 companies that you think sound like really good opportunities and then contact them about their fees, interest rates, and due dates. Also, check their policies and fines in the rare chance that you are not able to pay your loan on time. After your research, choose your option which seems the most feasible and provides you the most financial flexibility.
Applying and Approval
Finally, you have selected which company to apply for a payday loan through. Don’t worry! It is not a complex or time-consuming process. It is often quite quick and simple; all you need to do is simply fill out a form (usually online) which will take around 5-10 minutes and then wait for their response. Most of the time you will get approval within 24 hours or less and the requested amount will be deposited directly into your bank account.
Payday loans can provide fast, flexible options for your personal cash flow, but care needs to be made to ensure you don’t bite off more than you can chew, or borrow more than you can repay.
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