Payday loans online : Before going ahead and listing out the many benefits of payday loans, you need to be well informed of these loans and how to apply for them. Do these loans help you in any way or are you spending more and losing out more in the long run? Can you get a payday loan online with bad credit and if ‘yes’ how do you go about this?
What is a Payday Loan?
The payday loans are considered to be one type of ‘cash advance’ that are specifically designed to help you out till your next paycheck. Most of the times, these loans are for small amounts but you need to be aware that these work out the most expensive of all the different loans.
Payday Loans Bad Credit
Payday loans with bad credit are an option but this is falling into the debt trap. Most people who do not have any savings need these loans. It is tough to overcome both these problems. It is advisable to try staying away from payday loans with bad credit.
- You can start by ensuring you pay off all the debt payments on-time and make an effort not to incur any new debt.
- The credit builder loan can be an option. These are loans that are specifically designed for those who have bad credit or even no credit. These are offered by some credit unions and banks.
Payday Loans No Credit Check
Looking for payday loans with no credit check makes you an easy target for the many predators out there. Most often, title lenders and also payday lenders are the only ones offering you payday loans with no credit check. These loans can be dangerous as they need balloon payments on the short term basis. If you are unable to repay the loan on time, you are compelled to re-finance the loan. This is a ‘never-ending’ cycle.
Payday Loans for Bad Credit
Payday loans for bad credit is a possibility but with a high rate of interest. This loan caters to the needs of those individuals with a credit score of 575 or even a short credit history. These can be helpful as you can meet the needs of any emergency.
You can apply for these loans online. Different banks, credit unions, and online lenders offer these loans. You can conduct a search and find out which one works best for your requirement. You also need to compare the different rates of interest and other terms and conditions.
How does a Payday Loan work?
- Payday loans have few requirements and an application process that is very simple.
- You need to have an active account with a credit union or a bank, or a prepaid card account.
- A valid ID proving that you are 18 years old
- A job or any other source of income that can be verified
- You need to provide the required details along with the ID and your loan, once this is approved, is given to you within 24 hours.
These companies offering payday loans online operate under a number of different titles. Each of these has their specific ways of working out the loan and charging the interest. All of them make money via the interest and the upfront payment fees. There is a possibility that the lender takes a post-dated check as collateral. This will be deposited on the next payday.
Payday lenders also offer you the option of rolling over the loan for an additional fee.
Some Benefits of the Payday Loans Online
Here are some of the benefits you can avail with the payday loans online.
- Ease of Application
As mentioned, you have the freedom to apply for the payday loans online from the comfort of your home. Log in to the website, fill the form and upload your ID and bank statement/pay slip.
- Paperless and Presence-less Approval and Disbursal
If your documents are in order the approval of the loan does not take much time. The money is also credited into your bank account without wastage of any time. The background check is instant by checking out the credit score and also completing the KYC.
- Loan Amounts are Flexible
The amount that you can borrow depends on your monthly income and the capacity to repay.
- Payday Loans are Multi-purpose
You can use these payday loans for anything. There are no restrictions applicable.
- Short Tenure
The repayment is normally 1 month to 3 months.
Most of these online companies offering the payday loans are only a phone call away and ensure prompt customer support.