Payday loans are small, short-term cash advances that you can acquire through lending companies. Payday loan is a type of personal loan that you pay back on your paydays. It is an unsecured kind of loan that can also be obtained online.
- For you to be eligible to apply for a payday loan, you must:
Be a full time employee.
Logically, you have to be paid every payday for you to pay off your loan. You must earn a minimum of $1000 a month. Lending companies that offer payday cash advance loans undertake a high risk of not being paid. For assurance purposes, lenders will need your work information to be able to compute how much you can borrow. You will be able to apply for as much as your monthly pay’s worth. Lenders will also have their means in getting in touch with you once you have failed in meeting your loan agreement.
You must be more than 18 years old.
Understandably, if you are above 18 years of age, you are really employed and have a full-time job. Also with age, come legal responsibilities. At the age of 18, one can be legally liable for every action he takes, which means you can enter into contracts and you know your legal obligations.
You must have an active checking or savings bank account.
Payday loan lenders need your bank account information. Most online payday loans send loans through checking/savings accounts unlike storefront payday loans where you must submit piles of documents to have your loan application approved. Logically, you will also process your payment through bank. You can also issue your lender a post-dated check as a security measure that you will pay them on the date specified.
Proof of billing or residential proof.
This information comes in handy when the time comes for creditors to get in touch with you about your standing loan.
Good vs. Bad
Cash advances may be a good idea for some consumers but they can be bad for a lot of people too. Depending on how you will spend your borrowed cash, results may vary when it comes to loans. If you know that you are responsible enough to be able to pay off your loan as soon as possible then a loan may yield you a good outcome. One secret in keeping loans to your advantage is to pay it off the quickest way you can. These loans accumulate their amounts through interest rates. This means, the longer you pay it, the more will the interest rate pile up.
Payday loans are designed for one-time emergencies. This design comes in extremely expensive and you have to pay the loan in full on your payday to keep your personal check from bouncing to avoid bouncing check fees. Most consumers are trapped into renewing or extending their loans just to satisfy the loan agreement and keep their budgets at the same time. If in case you fail to meet your loan agreement, lending companies can use coercive collection tactics that can be very annoying and hinder you from functioning as a respectable individual.