Payday loans are really handy when you are in a sudden cash crunch. It could be that your car has met with a serious accident in the middle of the month and you need immediate cash for the fixes. Regular loans won’t be really helpful here as these usually involve lengthy approval process. Moreover, you won’t get approved if you can’t show a good credit. A payday loan is your savior here.
Defining payday loans
Payday loans can be defined as short-term immediate loans that are delivered within 24 hours maximum. In regards to the loan amount, you can withdraw something between $300 to $1,000. The application process is simple and fast and does not involve inspection of credit report. As a result, you will get payday loans even with bad credit. But it’s to note here these short-term loans usually command higher interest rates compared to regular loans. It’s because as these loans are provided even with bad credit, it becomes risky for the lender.
Payday loan requirements
There are some basic requirements that you have to meet to acquire payday loans-
- You must be a citizen of the State you are applying in for the loan
- You must have valid and stable job
- A long-standing bank account
- You should have a net income of minimum $500 a month
- No recent bankruptcy issues
- No outstanding loan
As mentioned earlier, payday loans charge high interest rates. But you can manage to secure a somewhat lower rate with a comparative study. It will be good to take a comparative study different payday loans on offer from an online loan database like House of Banks. The interest rate tends to vary from one payday lender to another. The comparative study will help you to find a competitive deal.