Payday loans are usually considered as short-term financial solutions for emergency expenses, such as emergency medical costs and a car repair. If you have a bad credit history or you don’t have adequate money to make ends meet, perhaps a payday loan is your best option.
The good news is that people of all ages and incomes are now using payday loans because they have a simple application and approval process. Fortunately, you can get a secure payday loan within a couple of hours after submitting your application. This article will show you how to get a secure payday loan.
How a payday loan works
You might have come across an ad on the internet, radio, or television about the payday loans and are wondering how to secure one for yourself. Well, payday loans are short-term loans offered by finance companies and other companies. Here is how payday loans work: you need to provide your banking, identification and other details to the lender. Also, you might require to write a check with the amount plus fees which are payable to the lender.
The lender will usually give you the amount of money that you requested minus the fee, and holds the check until the payday loan is due which is mostly the next payday. Alternatively, with permission from you, the lender can deposit the funds into your bank account electronically. Remember that the loan is due on the next payday, so you need to make sure that you have the money available to repay the loan.
When it comes to the fees, they are normally based on how much money you borrow or they are calculated as a percentage of the value of the check. Besides, a new fee is charged for the same loan if you consider rolling over the loan. Mind you, payday loans are like other types of traditional loans, meaning lenders are obliged by regulations to disclose all the costs of the loan.
As a result, you need to get the finance charge and the annual percentage rate before you agree to receive the loan. The annual percentage rate includes various things like the full amount you borrow, credit costs, the interest rate, and the duration of the loan.
The benefits of payday loans
Without a doubt, payday loans are increasingly becoming popular with people of most ages. One of the key reasons is because they are easy to access. After all, most lenders assure borrowers that you can receive the money within 24 hours after making an immediate lending decision.
Even better, companies offering payday loans are available 24/7 and provide online applications. This is unlike traditional loans which can take longer to apply and receive a response.
Aside from being easy to access, payday loans, such as those from netpayadvance.com usually don’t have complicated requirements compared to traditional loans. Think about it, traditional lenders like banks might need you to have a Social Security number, proof of income, photo ID, a credit check and can verify your ability to make repayments. With most payday lenders, they only have fewer requirements to consider your application for the loan. Generally, the lenders might ask you to have the following to get a loan:
- You should be aged 18 years old and above.
- Have a government-issued identification or Social Security number.
- You should have a regular job or any other regular source of income.
- You need to have an active bank account.
While the additional requirements from lenders are necessary to protect your funds, fewer requirements make it easier to access the cash. This is especially true when you need the cash urgently like paying emergency medical bills.
Another important benefit of payday loans is that lenders don’t check your credit history. This is unlike traditional loans where it’s usually mandatory for them to check your credit history before approving a loan. Because they don’t need to pull your credit, you can have peace of mind knowing that there is also no hard credit inquiry. Mind you, a hard credit inquiry might significantly reduce your credit score.
Payday loans are unsecured loans that differ from a car title loan or mortgage. This means you don’t need to use personal property to secure such loans. Therefore, if you default, it’s impossible for the lender to seize your assets. Although they are unsecured loans, lenders might have access to your bank account. This is one of the conditions that many lenders might ask you to provide, meaning they can take you to court for nonpayment or even send your debt to collections.
Who can apply for a payday loan
As explained earlier, payday loans are a quick and easy way for you to access money between paychecks. No wonder, people from a wide range of ages and incomes including young people. With the increase in the cost of living, payday loans that don’t need a credit score can be appealing to pay for emergency expenses for many people.
Young people are experiencing a lot of financial hardships considering that they have to take care of the student loan debt. Worse still, many young people, especially those from Generation Z are facing financial problems because they have to pay for expenses like transportation and food.
The best thing about payday loans is that you can apply for it online. Hence, if you use the internet, you can find various lenders offering these loans. The rise in usage of technology, such as apps has also made it easier to apply for payday loans. You can use some of these apps to access the money you earn before payday with the option of paying a tip.
If you don’t have the money to repay the loan in time, there is nothing to worry about. All that you need to do is to apply for another payday loan which you can use to pay off the initial one. In this way, you can avoid defaulting the original loan. As you can see, payday loans are not only an easier way to access the funds that you need but they also offer you the flexibility to repay them without the risk of default.
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Interesting related article: “What is a Payday Loan?”