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There are times when you’re in a financial rut, but you only need a little bit of help to get through. It could be that you missed a bill and now it’s due or your car requires some minor repairs to make it run again. You may need just a small amount of extra funds to get you through this crisis, but if it’s an amount you don’t have, the problem remains.
Furthermore, you may only need a small amount of cash and you want to pay the loan back right away. This is where payday loans step in. However, payday loans are not right for everyone and for every situation so you need to be discerning of your financial circumstances, line up your options and determine if getting payday loans are truly worth it.
A payday loan is small scale, short-term loan designed to help you meet urgent financial emergencies that require smaller amounts of money. It is a financing avenue that helps in fixing minor financial emergencies through quick, easy, and accessible loans. As long as the potential borrower can demonstrate financial stability and capacity, payday loans may still be granted despite their poor credit score.
Payday loans are unsecured loans so you don’t need to present collateral to obtain them. However, due to the lack of security in issuing the loan, payday loans are often charged with higher interest rates or flat fees and additional charges may apply when you are late with payments so your credit score may suffer.
Payday loans are known for their easy and streamlined applications. Here are the top benefits of payday loans and how you can take advantage of them.
Quick Sources of Funding. Most of the payday loan lenders operate through a website nowadays, although you can still file your loan applications personally in-store if that is what you prefer. Either way, most lenders provide an easy loan application process with quick approval feedback and same day loan deposit. Some lenders even provide the loan amount just a few minutes after approval. Given the payday loan applications’ fast and simple nature, you will be able to meet your financial emergencies with their help.
Bad Credit Approval. Lenders do not totally disregard your credit score as an approval criteria, but they are likely to be willing to provide you with payday loans even if you have bad credit score if you can demonstrate your financial capabilities to pay them back. This is also the leading reason why lenders typically require a proof of income so they can determine your eligibility to pay the loan back. As long as you can satisfy this condition, your bad credit score will not hinder you from getting payday loans. Some lenders also decide on interest rates that are in proportion with your credit standing.
Settle the Loan Right Away. Some borrowers do not like to let a loan stay outstanding for a long time, especially if the borrowed amount is rather small. Payday loans are payable from 15-30 days, allowing you to settle the loan right away.
While payday loans are quick and easy to obtain, they also come with a set of risks that any borrower must understand before signing the dotted line.
Getting payday loans is fairly easy and this is one of their top advantages over traditional loans. Payday loans are available online or in store and you simply have to choose a venue where to get your payday loans from.
When you’ve identified a reputable lender, you will need to log in to their website and fill out the application form. You need to submit personal information like name, age, employment and bank details. Some lenders may require first time borrowers to fax supporting documents like:
The lender will process your application and determine if you are eligible for the loan or not. This process typically just takes a few minutes and the lender will notify you of the decision right away. If you are qualified for the loan, you will then discuss the loan details with the lender. Depending on the lender, you might receive the loan amount in just a few minutes or the next business day through your bank account.
As small scale short-term loans, payday loans can help you deal with minor financial emergencies. When the loan is already in your possession, you can use it any way you see fit without having to justify anything to the lender. The lender will expect payment of the loan on your next payday which could be auto-debited from your bank account or to be paid personally in store, depending on your arrangements. When you’ve paid the loan off in full on the due date, you are free from the obligations of the loan. Otherwise, the lender may roll the interest over or impose late charges until the loan is paid off.
Most lenders do not accept more than one payday loans at the same time. You have to pay off the existing one before you can apply for another payday loan.
There is no wrong or right time to get payday loans since using them is upon the discretion of the borrower, but given the consequences that come with payday loans, it is highly important to assess your situation carefully before getting one.
As the name implies, payday loans help you bridge short-term financial patches ranging from just a few days or weeks. These loans are usually taken when you have unexpected expenses and you are just a few days away from your payday. This way, you can easily and quickly cover the cost of the loan.
At King of Kash, we advise you to never get a payday loan as the interest rates and their short-term nature makes them less helpful than they should be and end up doing more harm than good. We sincerely encourage you to pursue a personal loan or an installment loan which are far less risky, and expensive, alternatives to a payday loan.
There are a lot of considerations when getting a payday loan. First, you need to consider if you’re getting a fair deal from your lender. Although it is a given fact that payday loans are more expensive than traditional loans, you should still try to research the best deals that you can find. A thorough comparison shopping should help you score the most affordable rates.
You also need to consider the loan amount you need. Some lenders offer as low as $100 and can go as high as $2,500. These are all up to the discretion of the lender based on your eligibility and financial capacity. Work the amount you need and do not borrow more. You want to pay the loan off as quickly as you can to prevent further financial complications.
Lastly, know the terms of the loan. Usually, there are charges if you want to pay the loan off early, but there certainly are more charges if you pay it off late. If you believe you are going to be late in providing the payment, talk to your lender immediately in order to come up with a better payment option.
Payday loans are available to borrowers with bad credit and people who have declared bankruptcy. Lenders provide payday loans in good faith that it will be paid back regardless of your financial circumstances as long as you are able to establish financial capacity of paying the loan off.
Due to the nature of payday loans, it should be noted that they are not generic solutions to all your financial woes. It pays to be discerning of your financial situation and the options available to you before signing up with any lender. Payday loans can be very expensive if you don’t take care of the payments right away and can be a good way to trap you into debt since interests are rolled over until the loan is paid off.