At one time or another, just about everyone runs into a cash flow problem. Whether it is an unexpected medical bill, a utility payment, or a car repair, you need money quickly to get out of your financial bind. This is where pay loans can help.
What is a Payday Loan?
A payday loan is a short term loan. Unlike traditional person loans, a payday loan would be repaid within one to two weeks after receiving the money.
What Do I Need to Get a Payday Loan?
- In order to qualify for a payday loan, you need to have the following:
- Source of income of over $800 per month
- Proof of income
- Name, address, and phone number for your employer
- An active checking account
How Do Payday Loans Work?
Payday loans are very simple and convenient. After you apply for the loan, you will get an answer, usually within seconds. Most times, the loan will be deposited into your account the next day. When your loan is due, the lender would automatically deduct the loan amount plus interest from your bank account.
How Much Can I Borrow?
The amount of money that you can borrow depends on your annual income and your history with the lender. Most lenders will allow you to borrow between $300 and $800. Some lenders will allow you to borrow up to $1,500. It depends on the company that you are borrowing from. If you have taken a payday loan out in the past and made your payment on time, you would be eligible to borrow more the next time.
Can I Get a Payday Loan if I Have Poor Credit?
Because payday loan companies offer short term loans, your credit score is not an issue. This makes this type of loan an excellent option for anyone with poor credit.
What Happens if I Need More Time to Repay My Loan?
If you don’t have enough money in your account to cover your repayment, you can request an extension from the lender. This will give you an additional week to repay the loan. If you do request an extension, you would be responsible for paying additional money toward the interest.
What Happens if I Fail to Repay My Loan?
If you fail to repay your payday loan, you would be reported to the major credit bureaus. This can have a negative effect on your credit. Also, the lender reserves the right to take you to court to get the repayment of the loan.
If you need cash fast, a payday loan is an excellent way to get it.