Anyone who gets income regularly can apply for a payday loan. Whether you are paid on an hourly, weekly or monthly basis, you can get approved for the loan as long as you get some minimum amount of income. A payday loan is borrowed against your pay cheque. This means you cannot be approved for an amount that is higher than your income.
Anyone can get approved for the loan; whether you are working in blue or white-collar industry. Apart from your income, the state where you live may determine the amount of cash loans that you can be given. In some states, the total amount of payday loan that you can be given is £350. In other states, you may receive up to £1500. A few states allow the lenders to set the maximum amount that you can receive.
Payday loans can help you get by through a tough financial period. For example, when it is the middle of the month and you do not have cash, you can apply for the loan. You have to apply for the loan online. After applying, the lender will review your application and approved or reject it within a few hours. If your application is approved after 5pm, the money will be deposited in your account the next day – This also applied to weekend payday loans. A payday loan lender will not look at your credit score to determine your eligibility for financing. Instead, it is your ability to pay back the financing that will be considered.
When applying for a payday loan, be cautious to apply on for the amount that you need. The loan is usually charged a higher interest rate than would be charged for a comparable amount of bank loan. Basically, the higher the amount of loan you apply for, the more the interest that you will pay. Payday loans should only be used for small cash emergencies. You will have 28 days to pay back the loan.
When your payday is one or two weeks away and you are in need of funds to meet an expenditure that has arisen unexpectedly, payday loans come to your rescue. Payday loans or cash advances are easy-to-obtain, hassle-free loans that come in handy in times you need cash most, maybe to pay up your medical bills or make a credit card payment.
The main objective of payday loans is to help you with your urgent cash requirements until your next payday. It is different from other loans in that it does not require a lot of paper work. The entire process of filling an application form can be done online and your loan amount is usually credited to your bank account on the same day or on the next working day.
The companies offering you weekend online loans have a few requirements to be fulfilled by the applicant. Your minimum monthly salary should be $1000 and you should have had a valid checking account for at least three months. You should be in the current job for three consecutive months. You may be required to furnish a copy of your bank account statement for the confirmation that your salary is credited to the account every payday.
Payday loans do not demand any collateral security as they are unsecured loans. This makes it all the more easier to opt for such loans as it is a short-term loan that you’ll be paying by the next payday. But the most important thing to remember when you decide to take a payday loan is that you would need to pay a rate of interest much higher than all the other loans. Lending companies charge anywhere between 15 to 30% as interest on payday loans.
When you are not able to repay the loan within the stipulated time, the company extends your loan period for which you will have to pay an exorbitant amount as interest.
While spending within your means is always a prudent way to live, there may arise times when things go beyond control and you are caught up in a financial maze. At such times, payday loans are a blessing but you need to take care to pay back the payday loans in time so as to avoid getting into trouble in future.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk