One of the biggest appeals of the payday loans is the fact that they are available to people with bad credit and even no credit history at all. This allows almost any person, who is employed and earns certain amount of money per month to apply and borrow money against their next paycheck. Making it easy to borrow money when needed also stems from the fact that the vast majority of the cash advance lenders operate online, cutting down the time of the whole application process to a few short minutes.
What are payday loans and can a person with bad credit apply for one?
The payday loans are microloans, which are borrowed by employed men and women and repaid with their next paychecks. The amounts that could be borrowed are typically in the region of a few hundred dollars, while could be up to one thousand and five hundred dollars in some cases. However, these amounts could be also capped by a state legislation, together with the interest rate and the fees that the lenders are permitted to charge. Most of the lenders, who operate over the Internet, advertise their services as available even to people with poor credit, while some might still require credit check.
Is a payday loan expensive?
When compared to almost any form of long-term borrowing, the paycheck loans are expensive, but so are all short-term loans. The annual percentage rate (APR) is far higher than the banks charge on their long-term loans, but with the smaller borrowing amounts, it also results in just a few dollars. The higher rate is also explained by the risky nature of the loans, and the competition amongst the various lenders along with the state legislation, have greatly reduced the rates and the fees charged. These latest developments have made the payday loans far more affordable and the questionable practices far less frequent occurrence.
Who qualifies for a payday loan in the United States?
Although the requirements could vary from one lender to another, almost all of them require the borrowers to be US citizens, older than 18 years of age, permanent employees, and have a working checking account. Some lenders require a monthly salary or other fixed income that exceeds $1000 per month, while others do not approve applicants that have filed for bankruptcy. These are basic requirements that allow almost every employed American to apply successfully for a cash advance and get the money that they need in a matter of days.
How long does the application process take?
When applying online, the applications are typically approved in 24 hours or less, and the money is wired to the checking account of the borrower one business day after the application has been approved. Most borrowers do not work during the weekends or public holidays, while others operate 24/7, but since the banks are closed at the weekends or during the holidays, they can deposit the money only during the workdays.
Being able to get emergency cash quickly and hassle-free is extremely convenient and more and more people are using this form of borrowing since it is extremely convenient.
0 comments:
Post a Comment