Payday loans are usually small loans used to pay for an emergency or unexpected expense. As the name implies this type of loan is short-term and is typically paid back on your next payday. This kind of loan can be helpful because it gives you access to cash quickly. You can pay your unanticipated bill and avoid writing a bad check or negate the need to use money that is earmarked for another obligation. Following are more beneficial reasons for utilizing a payday loan:
- The application process is fast and approvals are granted quickly, usually the same day
- Most lenders offer online applications
- Once the loan is approved funds are sent directly to your checking account
- You don’t need to have any credit, and bad credit is okay
- Payday loans don’t require collateral like most loans at a bank
- You can use the money for anything
- Payday loans have a lending cap, usually $1000 or less, so you can’t over borrow
The availability of payday loans has dramatically increased over the years making it easier for people to get emergency funds quickly and easily. However, as with any loan, there will be interest charged on the funds you borrow. The amount of interest a payday loan lender can charge is regulated in every state where this service is offered. The lenders are required to share the rate of interest to be charged when making the loan. You should always read all loan documents, and ask any questions before signing any contracts.
It’s good to know there are companies that offer payday loans because you never know when you’ll be faced with an unplanned expense. If you find yourself in a situation where you need money quickly, then you should look into the possibility of using the services of a payday loan company.