Emergency expenses are all a part of one's financial life. But it is not like all the time we have the sufficient funds in order to cover for such expenses. Many people have found themselves around the middle of the month with no available funds and have dozens of financial responsibilities like feeding a family. You can resort to using a credit card account, but what if you do not have one? What if your credit balance is already maxed out? It is indeed quite tough to deal with emergency expenses if you find yourself with no resources to spare. So what can you do if you find yourself in such a situation? Well you could opt to get a payday loan.
So what exactly is a payday loan anyway? This loan actually comes in many names such as check advance loan, cash advance loan, post dated check loan and others call it deferred deposit check loan. However you want to call it, it is still pretty much the same thing, it is a short-term loan that usually comes with high interest rates. Payday loan is a form of unsecured loan. It is a short-term cash advance that will be deducted on your next paycheck. In this type of personal loan, your collateral is your job and your next paycheck. The amount that you can borrow largely depends on how much your monthly income is but it can range from $300 to $1500. Since it is a short-term loan, the payback period for payday loans is short. In most cases, the loan is paid back usually during the next upcoming payday, although there are lenders as well that can be flexible when it comes to the payback period.
So what are the benefits of applying for a payday loan? Perhaps one of the reasons why this loan is popular is because of the fact that it is easily accessible to those who are requiring quick cash which is perfect if you have emergency expenses. Being approved of a payday loan is much easier when compared to applying for a traditional loan from the bank. Minimum requirements include: you have a job, you are over 18 of age, you make at least $1000 per month, have a valid bank account and you are a US citizen. Even if you have a low credit score, qualifying for a payday loan is not a problem. When applying for a payday loan, you can go in person, through the phone and even online. The entire application process can be accomplished in under 20 minutes and the loan is automatically deposited to your bank account in a span of 24 hours. There are no up-front costs to be worried about and the transaction is only between you and the creditor.
You have to keep in mind that payday loans are not the solution to your every financial need. It is meant to be used only for emergencies and only if you have no other alternatives. Because of its high interest rates, repeated use of payday loans can create financial difficulties in the long run.
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