Payday loans are short term advances on your next paycheck. They often have a bad name due to their high fees and interest rate, but there are some positive aspects of payday loans. Particularly in a financial emergency when someone does not have the money to handle the situation otherwise, a payday loan may be a valid option.
In the midst of a financial crisis time is of the essence. A payday loan can get you the money you need very quickly. In most cases a payday loan company can get you the money you need within 24 hours. When an emergency strikes and you need the money right away, a payday loan can have the money deposited into your account the very next morning.
Applying for a payday loan is also very, very convenient. You can apply for these loans right on line from the comfort of your own home. The application form is typically very short and simple, not requiring a lot of information. Most payday loans are also faxless, meaning that it is not necessary to fax in any financial documents.
The application process is quick and easy, and approval is often instant. The lender will seek to get you the money you need as quickly as possible. The proceeds of the loan will usually be deposited right into your account that same night.
In the event that you do not have excellent credit a typical consumer loan may be out of reach. A payday loan lender will not check your credit prior to giving you a payday loan. This means that poor credit is not a problem.
Payday loans also have very few and easy to meet qualifications. You must be at least 18 years old, have a stable monthly income and an open and active checking account. In most cases you must make at least $1000 a month, but this can vary by lender.
In a financial emergency when you need a little quick cash a payday loan can be just what you need. These loans are frequently made for amounts from $100 to $1,500. The term on these loans is usually anywhere from one to two weeks.
While there are negative aspects of a payday loan, particularly the high interest rate and fees, in an emergency a payday loan may be your only option. Particularly if your credit is poor, this is one way that you can still get the money you need.