It’s the last week of the month, you have no cash reserve in hand, and all of a sudden one of your family members gets sick and you are required to pay for the medical expenses. What will you do in such a circumstance?
If you have friends or relatives who are are willing and can afford to help you, then you can obviously borrow from them. But what if they are as helpless as you are?
You will not be able to obtain any credit check loans, as it would possibly take weeks for approval, even if you have a good credit score.
The only solution for you in such a troublesome situation could be to take out a payday loan.
As you may be aware, payday loans is most like a cash advance you receive from a lending institution by providing a post-dated check to pay back the amount with the interest charges, once your next payday arrives. Payday loans are usually short-term loans that last only until your next payday, but still carry a high rate of interest. But if you cannot risk the health of your loved one, you may have no other option other than to consider accepting the high interest rates.
In most cases, the eligibility criteria for obtaining a payday loan is fairly simple: you have to be at least 18 years of age, have a constant source of income like a job, and possess a checking account.
As payday loans do not involve pulling out your credit report, you may not worry about containing various other debts. Usually, once you get approved, you will be issued the money from the payday loan within 24 hours of your application. In some cases, this time can take up a maximum of 48 hours.
Coming to the repayment of your payday loan amount, you will be informed the date at which the amount will be reclaimed by the lender, which will usually be after 28 days of you obtaining the loan. This reclamation can be done either by leaving a post-dated check with the lender, as mentioned before, or by debiting the amount directly to the lender’s account. This procedure will be chosen by the lender, in most cases.
In most payday loans, you will be allowed to borrow a maximum of $1000. The factor that will be considered the most in determining the amount you will be able to borrow is your income, in addition to various other factors.
Also, if you feel that you will not be able to repay the loan amount on or before the specified date and if your reason is genuine, your credit loans lender will often allow you to roll over the loan, by which the term period of your loan will be extended, of course with additional interest rate payments, for a future date.
Lenders ask for your employment details only to make sure that you are a viable borrower and that you have the capacity to pay back the loan, along with the interest charges and other additional fees associated with the loan.