What a Payday Loan is Really All About
Payday loans are considered unsecure meaning they do not require security or collateral. They are short term loans meant to be paid back in a few days usually on your next payday. Most of these loans can be applied for online and when approved the money is usually deposited into your bank account.
Generally when you make your first application you can borrow $300 depending on your take home pay. Approval rates are best when you ask for the minimum amount of $300 so it is advisable to only ask for that much the first time. Once you have successfully repaid your loan they may then offer to lend you more in subsequent loans.
Requirements for Payday Loans
Eligibility for a payday loan is that you have been employed for at least three months and you are 18 or older. You must also have a bank account with a valid debit card. You should be able to get the money even with a poor credit history if you meet the above criteria.
How do You Repay the Loan?
According to the contract you repay the principle plus interest on the date agreed upon. The repayment date is usually your payday hence the name payday loan. The lender usually collects your payment by debiting your bank account once your pay is deposited.
Loan Extension Requests
If something comes up and you are unable to repay the loan on time you can ask for an extension. If this happens it is recommended you contact the lender and explain your circumstances so they can explain your options.
The Benefits of Payday Loans
Eligibility: One of the benefits is the speed at which the cash can be credited to you. Cash is usually deposited into your bank account the same day you apply for the loan. This helps relieve any stress related to a lack of money in the moment.
The application process is very simple it takes a few minutes to apply and you do not have to waste time posting or faxing documents to the lender as you would with a bank loan for instance.
Bad Credit: These types of loans are designed for people with poor credit. This is because payday loan companies do not make their decision to lend solely based on credit history. If you meet the application criteria you have a good chance of getting the money.
The reason payday loan businesses seem to be everywhere is because they can meet the needs of people who do not meet the criteria of the banks plus banks will not lend small amounts for any reason.
To Wrap This Up
Many people do not have access to credit cards or traditional loans so the convenience of a payday provides options you cannot get elsewhere.
All in all getting a short-term loan is easy and convenient giving you access to money when you need it without the hassle of getting rejected at the bank.
Place ID: ChIJNzCQ7NhwcVMRNgvDogtP0eI
Acadia is a neighbourhood in the southeast quadrant of Calgary, Alberta. The area is bounded on the west by Macleod Trail, on the east by the Bow River, on the north by Heritage Drive and on the south by Southland Drive.
The land was annexed to the City of Calgary in 1956, and Acadia was established in 1960.
Population: 10,615 (2011)