Pay Day Loans

Pay Day Loans

online pay day loan

When a financial emergency arises you usually have to spend money that you weren’t expecting to spend or money that you simply just don’t have. You can try getting a bank loan but these loans are difficult to get and take quite some time to secure. Your can try asking a friend or family member for a short-term loan but they don’t always have the money you need on hand while some just won’t trust you with repayment. The easiest and the most secure way to get a quick loan is to apply for a payday loan online.

While a payday loan may cost more than a bank loan, it is faster and easier to get than a bank loan. Bank loans require a deep investigation into your credit history and your ability to repay. Payday loans rarely check your credit history as they are only concerned with your present ability to repay your loan. What you did last year with your money doesn’t mean you can’t repay a new loan and payday lenders know this. A loan is often approved based on your monthly income and your level of honesty on the payday application. Typically, you just need to earn at least one thousand dollars a month to qualify, own a valid bank account and have a full or part time job.

Applying for a payday loan is also a whole lot easier than applying for a bank loan or even borrowing from friends. With a pay day loan you can apply online so you don’t need to leave your house to have money deposited into your bank account. Simply visit the lender using your cellphone, tablet or computer and fill out the online application form. Decisions are usually rendered instantly and your loan is deposited shortly afterwards.

Payday loan repayment works a little different than other types of loans. A bank loan usually comes with a longer repayment term with monthly, bi-weekly or weekly payments required. A cash advance is a short-term loan that requires repayment as soon as your next paycheck is issued to you, hence the term payday loan. Some lenders offer flexible payment options of up to 6 months while others have a zero tolerance policy of 7 to 14 days.

Not repaying your payday loan is extremely dangerous since these loans are accompanied by compound interest. Compound interest accumulates very quickly and lenders often send delinquent accounts to credit agencies due to how quickly the loan amount gets out of hand. Short-term loans are great for financial emergencies if you repay them on time and honor your loan contract. Otherwise things can get overwhelming if you lapse on more than one payment.