Payday Loans- Easy solution for your monetary problems
Running out of money before your payday is always a bother. Things are even more frustrating if life decides to throw some expensive surprises your way while you’re struggling with money. These surprises can range from car repair bills to hospital bills. Of course, you need some fast cash to deal with these things.
In such cases, you need to borrow money but asking your loved ones for money is embarrassing. Similarly, bank loans can take a
while, and the repayment terms may be longer than what you’re comfortable with. That’s where payday loans come in. By applying for a pay
day loan, you can get the cash you need at short notice. Let’s get into these instant payday loans and how you can get them!
As such, the interest rates tend to be higher. Since these are short-term loans, you usually have to repay everything in two weeks. However, some payday lenders may offer you a more flexible loan agreement.
Nowadays, you can apply for online loans through websites connecting you with online lenders. Online payday loans are more convenient because the online lender can deposit the money into your bank account in a day.
How Much Can one borrow through Payday Loans ?
Generally, small payday loans range from $100 to $1000. However, some direct lenders can go beyond these amounts based on your income. Some states have set limits for the loan amount and interest rate. For example, Washington state law prohibits payday lending above $700 or 30% of the borrower’s total income. On the other hand, the maximum limit for Oregon is $50,000.
What Are the Interest Rates on Payday Loans?
Traditionally, payday loans cost you 15 to 20% on every $100. That’s $15 – $20 for every $100 you borrow. When we convert this interest to APR, i.e., annual percentage rate, it goes up to 391% and $521%.
These rates may seem high, but you only pay this amount once. So, if you repay the loan in time, the interest won’t be that high. Moreover, some state laws cap the APR at set values like 36%. We recommend looking into these things before signing the loan agreement.
How Do Same-Day Payday Loans Work?
The lender will take your information when you apply for a same-day loan online. They’ll review this information, especially your income, and decide whether they want to approve the loan. After approval, you can receive the funds in your account in less than twenty-four hours.
Your credit history isn’t that important unless you’re currently in dept. However, some lenders check your credit scores through credit bureaus. Regardless, you’re likely to score a payday loan even if you have a bad credit score.
You give your lender a pre-dated check for the payment in return for these funds. Alternatively, some may ask for access to your account to automatically withdraw the money they’re owed, and they’ll automatically withdraw the money from your account on your next payday.
Requirements for Instant Payday Loan
Applying for a payday is pretty simple, especially if you’re doing it online. You just need a few things, including:
Your current address
Social security number
Proof of age (you need to be at least 18)
Proof of income (pay stub)
Active bank account
Of course, having all this doesn’t guarantee a loan. Final approval rests with the lender, and they may have their specific criteria. Even so, taking care of these things beforehand can speed up the entire process.
What Happens If One Does Not Payback Payday Loans
We recommend paying back the loan amount on time at all costs. However, if you can’t pay back the money, ask the debtor to roll over your loan. You will still have to pay any associated fees that you do. Moreover, the total amount you owe will increase based on the interest rate.
To Sum It Up
A payday loan can help you hold out till your next payday. Most people can get approval for payday loans even with bad credit scores. That’s because lenders give you the money based on your anticipated income. We recommend talking to multiple lenders before you accept an offer to ensure you get the best loan terms.
If you’re applying for payday loans online, use a lending portal like Rad Cred. These portals don’t lend you the money themselves. However, they can connect you with willing lenders. Thus, you’ll get access to multiple lenders via a single platform. You can choose the lender that is best suited to your situation.
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