Payday loans, a feasible choice?

What are payday loans?

Financial problems can be extremely stressful especially if you need the money instantly. Emergency expenses such as for health reasons, tuition, bills, repairs, mortgage on imminent due date, and more can strike when you least expect it. For middle class people, facing financial deadlines could mean restless nights and inevitable troubles. So, payday loan is feasible option to overcome from these situations.

Checklist for avail payday loans

To qualify for a payday loan, the borrower needs to fulfill all of the following conditions. There are no exceptions.

  • You must be a US citizen.
  • You must at least 18 years of age.
  • You must be at a full time job currently and must be at this job for at least three months.
  • You must either have an active checking account or a savings account.
  • You’re after tax salary should be at least $ 1,000 or you must have a fixed income of $800.

When to avail of payday loans?

Payday loans should be availed only during emergencies. Considering the fact that the cost of carrying a payday loan is very high, it should be a resource of last resort. If one implements good budgeting techniques and has a good financial plan, the need for borrowing by way of payday loans can be minimized. Moreover, one must ensure that a payday loan is paid on time. Payday loans should not be rolled over or extended as within no time the borrower will find himself or herself in a debt trap where money may have to be borrowed just to repay the interest.

The Benefits

Availing short-term loans can be advantageous, too. Check the following list to further understand the upside of this type of loan:

  • Easy processing of the loan. As most applications can be completed online, approval and release of loan can be done within the day. Most providers deposit the amount loaned within 24 hours or the following business day. Having a quick access to money is one of the biggest advantages of this loan.
  • Convenient repayment channels. There is no need to go to the office as borrowers can repay their loaned amount through an auto-debited account. This is why an active current or checking account is necessary to provide upon the application period.
  • Having a bad credit history is not a problem. Most banks would turn down applicants with bad credit standing. With payday loans, this point is waived.
  • No collateral required. No hassle and no other documents required apart from the application form ad banking details.

Payday loans might be a viable option if you need quick cash. You should be careful who you are working with to get your loan. If you don’t need money right away, there may be a better solution for you.