The Inside Scoop on Payday Loans
A payday loan is an unsecured loan not dependent on collateral such as a car. It is considered a small short-term loan to be repaid on your next payday. Most of these loans can be applied for online and when approved the money is usually deposited into your bank account.
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
Eligibility for a payday loan is that you have been employed for at least three months and you are 18 or older. You must also have a valid debit card for your bank account. Even if you have bad credit history you should still be able to obtain a payday loan if you fulfill the above criteria.
How do You Repay the Loan?
You will need to repay the loan amount plus interest on the date specified in the loan agreement. The repayment date is usually your payday hence the name payday loan. The repayment may be collected by debiting your bank account on your next payday.
Loan Extension Requests
If something comes up and you are unable to repay the loan on time you can ask for an extension. If this happens it is recommended you contact the lender and explain your circumstances so they can explain your options.
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 helps relieve any stress related to a lack of money in the moment.
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.
Bad Credit: These types of loans are designed for people with poor credit. Reason being the payday loan firms will lend money based on you meeting their lower requirements. As long as you meet their needs they can give you what you want.
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
Many people do not have access to credit cards or traditional loans so the convenience of a payday provides options you cannot get elsewhere.
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: ChIJkRvoVNhtcVMRUp3oa9t4yEw
Aspen Woods is a residential neighbourhood in the southwest quadrant of Calgary, Alberta, consisting mostly of acreages and single-family detached homes.
Aspen Woods was established as a neighbourhood in 2001, on land annexed to the City of Calgary in 1956.
Population: 898 (2006)