Have you ever been caught in a situation where you need cash – but are still one week away from payday? The truth is – who hasn’t. But, unless you have money in the bank that can easily draw out, you may have a problem getting the cash you need to carry you over. A payday loan, though, may be just the thing you need to get you through the week. Here is some information about payday loans that will show you what is involved in getting one.
Payday loans are generally small loans – up to about $1,500, that just about anyone can get. The requirements that you need to have in order to get a payday loan are very small. In fact, there are only about three of them – and most people will meet them. The first one is that you need to have been employed at your present place of employment for at least two months. This may be a little flexible, though, with some payday loan lenders having different requirements on the length of your employment.
Another requirement is about the amount of your pay. In most cases, you need to make at least $1,000 per month. The lender of payday loans will verify your place of employment and that you make at least that much.
A third requirement is that you will need a checking account. When you apply for the payday loan you will need to supply them with an account number and a permission slip to withdraw the amount you borrow on your next paycheck – usually about two weeks. The withdrawal will be made directly from your account and it will be deposited there, too. This means, of course, that if you do not provide them with correct information – then you do not get the money, either!
Apart from these simple requirements, there really is anything else you will need to apply. There will be no credit check, so, it does not matter what your credit rating is at the time.
You should look into the interest rate, though, because they are usually quite high. Generally, the interest rate on a payday loan will be somewhere between 25 to 30% of the amount borrowed – every payday. Put simply, that means for every hundred dollars you borrow, you will pay $25 in interest. You usually will have the option to have the loan extended until the following payday, too, but that will mean that the interest is now at 50 to 60%.
There is also a limitation on the number of payday loans you can have. Usually, the first one you get will be a lower amount, possibly around $400, until you prove that you can and will pay it back. After that, you should be able to get more. The payday loan lenders have a closely connected network so that they can tell if you have other payday loans out. The limit is usually three at one time – but that would depend on your income.
Payday loans are expensive, but they still may be a source of money you need to consider if you find you have run out of cash. Shop around for the best interest rates, and then apply online – and have your cash in your account in the morning – sometimes in less than an hour.
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