It is difficult at times when your finances are dwindling and your source of income is unyielding. It’s not easy to come out of such a vortexwhich disturbs your life and the people around you.On one hand, facing financial constraints due to debts, bad credit, etc., is troublesome, on the other, there is no getting away from everyday needs like buying food, paying bills and medical needs.When you need money for these things, most banks may not even deliberate on these matters or provide anyfinancialassistance. Understanding such apredicament, financial agencies like payday loan centers offer “payday loans” that help serve the purpose.
Any person within the legal constitutional rights and age limit can take out a payday loan. Since it is a small, short-term loan secured against the borrower’s next paycheck, it has limited interest rates or APR (Annual Percentage Rate)quoted as per the local jurisdiction.
Eligibility For A Payday Loan
The payday loan centers consider the following things as important criteria to consider a person eligible to achieve a payday loan.
- A checking accountwith frequent transactions. This also helps in online credit or debit of money directly without having you to visit the office directly.
- A verification of employment or a current sourceof income. This ensures that you are likely to pay the loan back and will not struggle to do so.
Process Involved In Getting A Payday Loan
Visiting a payday lending center and securing cash payment, which is due in full on the borrower’s next pay check is the normal way. In this process, a borrower writes the lender a postdated check with the full amount along with the interest fees that could be cashed in by the lender if the borrower fails to repay during the maturity date.
In a more modern and fast-paced approach, consumers complete the online application mentioning required details and the amount is directlydepositedto the borrower’s account, furthermore, the loan repayment and/or fees aretransferred electronically from the borrower’s account once they received their next paycheck.
Are payday loans good?
- It is not just a back-up option when you run out of money during your time of need, but also the most easiest source of finance that involvesa hassle-free process.
- With so many cheap payday loan offering centers in the market, any person could utilize this easy process. It is an instant cash option, and thus the reason to be opted by many.
- The interest rates are not burdening and since it is a small amount (from a few hundred to a couple of thousand), it could be easily repaid.
- It does not consider your previous bad credit history to consider your payday loan eligibility.