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.
Generally when you make your first application you can borrow $300 depending on your take home pay. You are more likely to be approved the less you want to borrow so it is advisable to borrow only what you need. Like other lenders once you have established yourself you can borrow a higher amount if needed the next time.
Who Can Apply for a Payday Loan?
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 bank account with a valid debit card. You should be able to get the money even with a poor credit history if you meet 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 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.
What are the Benefits of a Payday Loan?
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.
Overall payday loans are convenient easy to access and offer a viable option when you need money quickly.
Place ID: ChIJw-F_ArB2cVMRjjwE9Zu3luE
Canyon Meadows is a residential neighbourhood in the southwest quadrant of Calgary, Alberta, Canada. It is bounded by Anderson Road to the north, Macleod Trail to the east, Fish Creek Provincial Park and Canyon Meadows Drive to the south and 14 Street W to the west.
Area: 1.197 mi²
Population: 7,935 (2006)