There are times when we run out of cash and the payday is quite far. There are pending medical expenses, unexpected office renovation work, car needs to be repaired, insurance amount to be paid and many such instances. Even paycheck sometimes does not seem enough to incur regular expenses. At such times, one often calls up friends and acquaintances for financial help. But what if they refuse to extend help at such a dire need of the hour? Applying for Payday loans is the answer. After a borrower is granted payday loans, also known as paycheck advance or quick loans, one can use the money for several reasons like insurance, gasoline, electricity expenses, groceries or other necessities.
You can apply for these short term loans when you are in urgent need of cash and receive the amount just within 24 hours. You are not even asked to pledge any property as these quick cash loans are collateral free. Application for these loans can be sent over the internet also and the money gets deposited directly into the bank account. However, just as attractive payday loans sound, payday loans can also prove to be troublesome for the borrower if they are not paid back within designated time. If a person becomes habitual of availing payday advance loans, it can lead to a steep financial downfall for the borrower.
One must apply for payday loans only during times of financial crises so that repayment doesn’t pose a problem. However, question now arises that how can a person apply for payday loans? How can such loans be availed and what are the requirements?
A quick glance at payday loans
Payday loans are designed to provide immediate cash to the borrower for a short time period which generally ranges from 2 to 4 weeks. The borrower, in return, has to assure that the amount would be repaid on his/her next payday. High rate of interest is charged on the borrowed amount.
Quick or fast loans can be availed only by those who are at least 18 years of age or more and have a permanent job. Those who are self-employed cannot apply for payday loans.
Meanwhile, one can find scores of money lending firms which are willing to pay you payday loans. While some firms are open for 24 hours, many companies offer assistance over the internet. This means that a person willing to avail payday loans can fill in registration form available at lender’s website and get cash in return just within hours. All the borrower has to do is provide information which includes his/her name, job profile, employment details and bank account information I the online application form. Contact details are also to be provided along with some reference numbers so that the firm can contact your friends or family member if you are out of reach. One of the best parts is that the money lending firm would also not go through your credit history and rather help you by providing cash just within few hours of application.
This underlines the reasons why payday loans have gained popularity these days. Some of the benefits of these loans are:
3. Bad credit history is not a problem
4. Helps you meet urgent financial needs
5. One can apply for payday loans online
But if you do not have access to internet, money lending firms also offer payday loans over phone. Firms have a toll free number which you can dial and get in touch with the company’s representative who would take down all your information in a secured manner. This service must be availed only if you have no other option. Otherwise, applying online is the most reliable and trusted method.
However, it is a must for a borrower to conduct a thorough research before applying for quick loans. Research must include the following:
• Knowing the background of money lending firm.
• Going through Rules and regulations of the firm.
• Drawing a comparison between the lenders before jumping to conclusion.
• Knowing the minimum and maximum amount that can be borrowed and rate of interest that would be charged over the amount.
• Knowing the additional charges that will have to be paid if the borrower decides to extend due date.
The above listed aspects must always be kept in mind while a person applies for payday loans. As mentioned, the procedure to apply for quick loans is an easy one. Once you reach the company office, you will be asked to provide xerox copies of past paychecks, age proof, proof of the present job, salary amount and bank details. Firms also conduct photo identification test before providing payday loans. After you share this information with the money lending firm, the information is verified following which the firm approves the loan and money gets credited in the borrower’s account on the same day.
What to do when you need Payday Loans
Notably, the borrowers have to pay back the loan within 15-30 days, failing which they will have to pay additional fee which is generally high.
Some of the facts and figures relate to payday loans are as follows:
1. Statistics shows that people applying for these unsecured for of loans are aged between 18 to 35 years.
2. The rate of interest charged on these short term loans would be up to 30 times that it is charged on credit card loans.
3. An average borrower has nine transactions every year.
4. Research shows that payday borrowers would have faced unpaid medical expenses, credit card issue, bank overdraft and similar situations.
So if you are looking for instant cash, you can quickly find out a reliable lender in your vicinity, fill in the application form and get money in return. Just make sure that you use the loan amount for genuine reason and only to meet your financial obligation. The loan amount must also be paid back within designated time to avoid any hurdle in future.