It is all too easy to sit back and imagine that we will never run into financial struggle or require a loan from anyone else to help ourselves out when we are in a tough spot. We might like to think this one so as to comfort ourselves from the reality that the vast majority of people do run into some financial trouble at some point in their lives. Given how easy it is to fall into this category, should we not go ahead and learn about some of the options that are available when times get tight? We feel that this is the only productive way to treat our finances.
What Is A Payday Loan?
The hint about what these are comes from the name itself. They are generally short-term loans that provide an individual with some funding until they can reach their next payday. The purpose of such a loan is to help bridge the gap between paychecks and cover any expenses that may require immediate payment. People use them for all kinds of purposes, but they are typically reserved for things that you simply don’t want to be cut off from. Think about things like your electric bill or your car note. Either of those things falling into default could cause you some serious problems.
Repayment terms on a payday loan may range from 7 to 45 days depending on who the lender is and how the loan is structured. If this is not enough time to handle the situation that you are in, then you may want to inquire about installment loans from those same lenders. They often offer this loan type as well, and it may prove to be more suitable for your circumstances.
Is There A Credit Check Required?
Credit checks are not required for payday loans, and this is part of the appeal of this type of lending. Someone who receives a payday loan does not have to submit documentation proving their creditworthiness, but they may still be asked to provide proof of employment in the form of a pay stub. This is considered proof enough that one has the ability to repay the loan.
A lot of the appeal of a payday loan is the fact that it has much lower barriers to entry than does a traditional loan. It is actually possible for a lot larger of a segment of the population to receive a payday loan than it is for that same population to get traditional funding.
Immediate Cash Even With Bad Credit
A hurdle that many borrowers are aware of is the fact that it takes a considerable amount of time to borrow the money that they require to get through their immediate financial obligations. They can’t wait around for some bank someone to debate if they are worthy of receiving funds or not. The need for immediate financial assistance is too great. That is why payday loans or even online payday loans are a great alternative for those individuals. They can borrow just the amount that they need and receive the funding very rapidly. Some lenders are literally able to place the funds into the borrower’s account just one day after they are approved for funding. You will not find that with any other kind of lender or any other kind of loan.
How Long Is The Approval Process?
What you are probably asking yourself at this point is just how long the approval process to get a new payday loan is. It is great that they are available in a hurry, but are they going to take a long time to decide if they will lend to you at all? There is good news here as well.
On average it takes just a few minutes for an online payday lender to make an approval decision about your loan. They are generally only trying to determine that you have a job with enough income to make payments to them. They want to provide loans to virtually everyone that comes to them seeking funding, but they need to make sure that they are only lending to those who will actually make the payments. You can see your approval decision appear on screen in just moments.
Why Might A Person Be Denied?
There are very few reasons why a person may be denied from receiving their payday loan. These reasons include that the individual does not have proof of employment or that they do not have a require checking account to deposit funds into. Some people enter incorrect details when they are applying for their loan, and that may also prevent them from receiving funding. Outside of those limited reasons, it is pretty uncommon to see anyone get turned down.
How These Loans Can Save You Money
You might think that borrowing money cannot possibly save you money, but it can. The late fees and overdraft fees charged by banks, credit card companies, and other financial institutions are often much higher on an APR basis than what you get from borrowing a short-term loan. These fees can add up, and they can cost you in a major way. Instead of falling into that trap, consider going with a short-term loan to receive the funding that you require and make the most of the situation that you are in. These can get you back on the path of correct spending habits if you use them wisely.