Getting through until payday can be a real trick. This is especially so when minor emergencies rise and throw a monkey wrench into a perfectly calculated budget. If there’s a need for cash right away to cover the gap, payday loans can provide the perfect solution.
The Basics About Payday Loans
Getting a loan to cover a gap until payday (or the next several paydays) isn’t quite like going to a bank and applying for a large loan. This type of signature loan is simplified and meant to help people cover emergencies as they arise. Here are some basic points about these loans that make them so attractive for meeting small financial needs in a hurry:
* The application process – Make no mistake; payday loans are not bank loans. This means the application process is streamlined and fast. Typically, applications are filed online and processed rather quickly. Instead of having to offer pages of background information and personal details, these loans focus on a few basic facts: personal details for repayment, proof of steady income and funding amount desired.
* The speed – This type of funding is generally processed very quickly. In most cases, approvals are granted almost immediately and money is made available within a day or so. To make it even easier, many lenders simple transfer funds into borrowers’ bank accounts. This means access to funding is extremely speedy.
* The requirements – People with less than ideal credit can get this type of funding. Since the loans are generally small, typically $1,000 or less, all that’s required is a proof of income. Many payday loan lenders don’t even run credit checks if income is sufficient.
* The funding amounts – Sometimes all that’s needed to enjoy a little financial breathing room is a few hundred dollars. Banks simply won’t handle loans that small. Credit cards can be difficult to obtain and the terms of cash advances are difficult to understand. Payday loan vehicles are designed for small funding amounts specifically.
* The repayment process – Since payday loans are meant for short-term situations, the repayment process is typically fast and easy. In most cases, lenders simply deduct installment payments from a borrower’s bank account. This makes paying back the loan hassle free.
