There are many reasons why you may need a small short term loan. You have bills to pay and your payday is still far away, your home needs some repairs that must be done in no time. Or there is a little something that you just can't wait to buy.
Payday loans can get you out of a hurry. They are easy to obtain, and they are also available for bad credit people. Since they last a short period of time, no credit check is required. That makes this kind of loans accessible to get, even if your credit history is not perfect. Just with taking some precautions when choosing your lender, you may get rid of your debt or buy that thing you want in no time.
How To Obtain A Payday Loan
There are two different ways to get a payday loan. Either you can visit a lender's office or you can apply through the Internet.
Online loan applications are gaining ground since there isn't any required documentation to present and you can fill in the forms in less than five minutes. You also get an instant response on your approval.
Unlike loans you get from a lender's office, online lenders do not require a personal pre-signed check. In general your bank account details are enough. Once you are approved, you receive the money into your bank account. Most of the times within the next 24 hours of your approval.
If you are not sure of where to get your loan, Internet is an excellent way to search and compare for different lenders.
Either if you decide to apply for your payday loan personally or do it through the Internet, there are some requirements that are common to both kinds of lenders, such as having the legal age to apply, an existent bank account, and a reliable income source.
Income sources have not necessarily to be from an employment. Some lenders will accept an income from a rent or government benefits but there are many of them who won't approve the loan if you are not an employee with a fixed income. There are also lenders who will require you to earn a certain minimum salary in order to get approved.
Some Precautions To Have In Mind When Applying For A Payday Loan
The most important thing to look at when you are looking for a payday loan is the interest rate. Based in the short term these kind of loans have, the interest rate charged by some lenders is sometimes way too high. There are payday loans which their interest rates are near 400% annual percentage rate. The best thing to do to avoid these exaggerated rates, is always looking for different lenders and compare their loan's terms.
Another important thing that needs special attention, is the requested amount of money. Some people are tempted by the lender company to obtain the maximum amount they can apply for. But you must be very careful with this. Always remember that these loan types are short term loans. You will be forced to return the money in two weeks time, and missing a deadline is something you don't want to do. If you can't accomplish the payment, you will have to ask for an extension with the extra charges this implies for you, such as interests and renewal fees.
If you are not sure you will be able to return the money in the specified time, you may also consider applying for a small consumer loan. They have more requirements to fulfill but they have also longer terms and usually, lower interests.