There are a lot of misconceptions of what a payday loan is, but if we would have to summarize it in a short description, it would be ” a quick emergency loan ”.
We’re going to write all you need to know about the payday loan in the upcoming text and you’re free to judge it for yourself.
A payday loan is the solution to any small financial problem. There are times when you need just a few extra bucks to do what you want to do or to solve some kind of an emergency you’re having which cannot wait. Maybe you’re a bit short on rent for this month, maybe your friend needs money but he has no stable job, so he asked you to help him out on this one.
There are a lot of things that can happen, and most of them require urgent attention. When these situations happen, a bank loan might not be fast enough to solve your problems. In order to get a bank loan, you will have to be qualified for the loan and a lot of people get declined by banks. Even if you get approved, the process would take ages compared to how fast you can get money from payday loans.
Payday loans offer to give you a loan within an hour of your request, on hands or to send it to your bank account, depending on which method you’re using to apply for a loan. There are two methods by which you can apply for a loan, personally and via internet. Both of these methods will only require your personal information, some kind of a legal document to verify your personal information and a steady job which can cover the cost of your loan. The only difference is, when you’re applying via internet, you will have to have a bank account to which they will send the money.
It will take some time for them to check the validity of your personal information and your work related information and if it’s valid, you will receive the loan within an hour or two.
First Ask Yourself
So how much money can you borrow and how fast do you have to return it?
The money you will be able to borrow from payday loan companies varies between a hundred and a thousand dollars. This is just enough to cover the costs of your unexpected emergencies, and to make the whole experience even better, the loan lasts until your next paycheck. Everywhere you will find that the loan is to be paid back averagely in two weeks, but that makes sense since a month has four weeks and you will pay it back with your next paycheck.
The interest here isn’t expressed with percentages but rather like this, for example, 10 dollars on each 100 dollars you borrow. Which means if you borrow 400 dollars you will pay back 440 dollars. Depending on the kind of an emergency you’re having, 40 dollars can be a very small price to pay.