What a Payday Loan is Really All About
A payday loan is an unsecured loan not dependent on collateral such as a car. They are short term loans meant to be paid back in a few days usually on your next payday. You can apply online and the money loaned can be credited into your bank account on the same day.
The most common amount lent for first time borrowers is $300 or more maybe depending on your income. You are more likely to be approved the less you want to borrow so it is advisable to borrow only what you need. Once you have successfully repaid your loan they may then offer to lend you more in subsequent loans.
Requirements for Payday Loans
To be eligible for a payday loan you must be over 18 and employed for at least three months. You must also have a bank account with a valid debit card. Even if you have bad credit history you should still be able to obtain a payday loan if you fulfill the above criteria.
Best Way to 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.
Repayment Over a Longer Period
If something comes up and you are unable to repay the loan on time you can ask for an extension. If you find this necessary you will need to contact the agency to explain the situation and ask for an extension.
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 can be very helpful if you have a short-term cash flow problem and need money right now.
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.
Poor Credit History: Payday loans are available to 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.
For many people a payday loan may be the only way they are able to get credit especially in current times where many lenders are unwilling to provide loans never mind to a person with poor credit.
To Wrap This Up
There are a lot of good people who do not have a credit card or established credit so they use payday loan companies to help get them through a tough time.
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: ChIJIcBDZsducVMR-Bdl_dNX5Rk
Bowness is a neighbourhood and former town in west Calgary, Alberta, Canada. The former town was amalgamated into the City of Calgary in 1964.
The neighbourhood is bordered by the Bow River to the north and east, 16 Avenue to the south, and Stoney Trail to the west.
Population: 11,308 (2008)