Just the word “Payday Loan” signifies what this type of loan is meant to be, a short-term amount of money until the next time you get paid and you then pay back the amount you borrowed, including interest.
Payday Loan businesses, always popular with society have, in recent years gained more popularity. A payday loan provides easy to access money when a financial emergency arises.
For those who are considering a payday loan you need to know that this type of loan is not long-term, nor should it be an answer to your long-term finances.
The Pros of a Payday Loan
A payday loan is a short-term solution to an immediate and unexpected financial burden that you do not have the money to meet. The majorities of people who have less than perfect credit and do not meet the qualifications for a traditional revolving loan or personal bank loan turn to a payday loan.
No payday loan company will float your money without some security attached. This security comes in the way of a dated and signed check from you, made out to the loan company, in the amount you borrowed, including interest. If you neglect to pay back this amount on your next payday the company deposits your check for payment. If you physically pay back your loan you get your “voided” check back.
Payday loans are simple and fast to get with little paperwork. Once you meet a few items of criteria and you turn in your paperwork, you get your funds. Application and funds are done on the same day.
- Checking account statement
- Pay statements or proof of income, such as your Social Security Award Letter
- Postdated check
- Photo ID
- No Collateral
Payday loan companies keep all your information secure and do not share information, so your privacy is held securely. Payday loans do not care why you need the funds, so no explanations are necessary.
When you apply for a payday loan, there are no credit checks, so it does not matter if you have a low credit score or no credit rating.
Circumstances Requiring a Payday Loan
A payday loan fits the qualifications for any situation that arises in your life unexpectedly that requires funds that you do not have available. There are an unlimited number of circumstances, and a few may be the following.
- Emergency travel expenses
- Emergency medical expenses
- Unforeseen car repairs
- Emergency home repairs
A payday loan is a simple, quick, and easy way to get funds for any reason.