Need Money in a Hurry?
You find that your paycheck has run out in a hurry and contemplate taking a payday loan. Looking online, you find a host of advertisements offering to help you out of the crisis that you are in. The offers are tempting and you feel you need to take one up. But you should ask some questions before you do anything.
Can You Make Alternate Arrangements for the Money?
Payday loans are going to cost you money. The money is available, but will cost a little extra. The cost is higher than a standard bank loan (but much easier to come by) and repayment is required on your next payday. Are you prepared to face that eventuality? Are there sources that can offer you the money without your having to shoulder the costs? Your friends or relatives may be able to help you out, but you’ll want to be careful not to stretch their good will too far. If you can make such arrangements, that’s great. You will save yourself some money by using alternative arrangements.
Can You Make Do Without a Payday Loan?
Possibilities are that you cannot. You can be the sole judge about this particular decision. Thinking aloud about the options that you may have at your disposal in avoiding a payday loan is the first question you should ask yourself. You could be able to hold off certain expenses that you are looking to cover with the money borrowed. On the other hand, you could be facing an emergency that cannot be delayed. Make the right choice before you send out your application.
What Criteria Make You Eligible for a Payday Loan?
Chances are that you are eligible for a payday loan. Lenders in most cases will keep evaluation criteria to a minimum. All that they require is that you are 18 years or older, be employed with a paycheck of $1,000 or more, have a bank account and be a citizen of the country. If you meet these requirements, you can rest assured that you qualify for a payday loan.
Don’t Worry About Bad Credit
There is no cause for worry in such a situation. Lenders tend not to look at credit scores of most applicants. There is a huge section of people who are in this category. Traditional banks and institutions hesitate to offer them loans. Private lenders are looking to take advantage of this position and create a niche for themselves.
Know the Amount and Period of the Loan
Payday loans are usually offered for short terms. The term of the loan lasts from 14 to 30 days. Loan amounts written are also small. A typical payday loan will be written for amounts from $100 to $1,500. Payday loans are offered on the understanding that you will return the money borrowed on your next payday. If you find yourself unable to meet the commitment, you may contact the lender for an extension. Be prepared in this circumstance to pay additional charges that the lender may look to charge.
Charges that payday loans attract will be higher than that charged by banks. The lender in this case is offering the money based on your employment status. He will be looking to cover his risk by charging a little extra for the money that he is offering.