There are times when you may need fast cash suddenly because of an emergency situation like an accident or a sudden expense that might crop up out of nowhere. So what do you do? Ask a friend for a loan or apply for one at work? But these ideas might not be of help when the requirement has great urgency. This is where payday loans can help as these are the loans that you can avail even without checking credit requirements.
A payday loan allows you to take a short-term loan against your paycheck, with a commitment to repay the loan on your next payday (or within three months as agreed with the provider). The loan amount goes directly into the bank amount and you have to pay back a sum of the borrowed amount and the interest at the end of the loan period.
Payday loans were originally designed to help people bear emergency expenses till the payday. The best thing about this type of loan is that it saves you from sudden financial contingency. The concept is enticing because it caters to such people who fail to qualify for traditional bank loans as the lender offers a payday loan without a prior credit check. Moreover, the procedure is simple, fast and hassle-free, which makes it ideal for quick cash requirements. What more, you can apply for it online and get it approved quickly. So if you want to apply for a payday loan, this is all that you need to know.
Eligibility Requirements
Even though you do not need to have a bank account for qualifying for a payday loan, there are some basic eligibility requirements that you need to fulfill:
- The legal age to qualify for this loan is at least 21 years.
- The borrower must have a valid proof of permanent income. In case, he is not employed, he can provide documentation attesting a capacity to pay back the amount loaned.
- A valid checking or savings account.
Application Process
If you are looking for quick cash loans near San Jose or anywhere across the US, payday loans make the ideal option because of the ease and simplicity of the application process. A majority of lenders have online portals where you can submit your application, without needing to visit their physical location. With this, the application process becomes quick as it is received, processed and approved within 24 hours in most cases. Following this, the loan will be credited digitally in the bank account provided by you. The entire process is paperless and hassle-free. Those who do not want the loan amount to be deposited in the bank account can avail it through a check. There is even the option to get it credited to the bitcoin account with a bitcoin payday loan.
Loan Limit
The minimum amount that you can borrow through a payday loan depends on the state you reside in. The minimum limit in most of the US states is $50 and the maximum amount goes up to $1000. This is a short term loan that has to be repaid within 2-4 weeks though a longer period can be availed by a mutual agreement with the lender.
Interest Rate
The interest that you are going to pay on a loan is perhaps the most important thing to consider while applying for it. The interest rates on payday loans are significantly higher as compared to that on the conventional loans. The reason is that it enables you to avail the loan on a very short notice and without any major requirements or formalities. Since the interest rates are so high, you need to ensure that you will be able to repay the loan after the lapse of its time limit otherwise you may end up paying more interest than the actual amount loaned.
A Final Word
Even though a payday loan is extremely helpful to tackle sudden financial emergency, you should avoid falling into a habit of picking it month after month. It is a serious responsibility and the inability to settle it in time can attract penalties for you. Just the fact that it is available instantly does not mean that you start picking a loan every month for trivial reasons. Therefore, you should not take such a loan unless you have a very valid reason to do so. Also, ensure that you will be absolutely in a position to repay it by the end of the month.
This is a sponsored article.