What is a Payday Loan

What is a Payday Loan

As the name suggests, “Payday Loan” is a short-term loan that can be hugely helpful when you have to meet sudden repairing of your vehicle or emergency funeral expenses, etc. You cannot get a way out except taking a payday loan on these occasions. I will not suggest you borrow some money from any family member I know it becomes an embarrassing situation for you to ask someone for financial help.

You can borrow as little as $50 up to $1000. If you are applying first time for a payday loan, the company will not approve your request for a greater payday loan. You are bound to pay the payday loan within 28 days. If you return the payday loan in the set days, you are asked to pay the interest only for those days. If you do not return the payday loan within this duration, you are charged a higher interest rate at 600% a year. So, think many times to apply for a payday loan.so you can get a Loan here.

What is a Payday Loan

If you want to request a payday loan, you should fulfill some basic requirements have been discussed below.

  • You should be minimum 18 years old to apply it.
  • You should be a US citizen. In this context, you need to add your social security number or the citizenship ID number while filling up the form.
  • You should provide the financial proof. If you are earning less than $800 a year, you are not eligible for this loan.
  • You need to have a bank account where the transactions will take place. The company will check your bank account and transfer the payday loan to your account when you apply for it online. When the next payday comes, the payday loan and the finance charges of the company will automatically deduct from your account. Without a bank account, you cannot get a payday loan. It is the only source the company uses for transactions.
  • You need to provide your full name, bank account and contact info. You also add the employer’s name, your designation, monthly salary and the company’s name in the given fields.
  • To provide a financial proof, you need to attach the monthly payment stubs with the form. As soon as you click “Submit” to forward your request for a payday loan, the company will start the verification process. Within 10 minutes you will get the desired payday loan in your account. So, a payday loan is also known as “fast cash.”

It is still controversial to call it a blessing in disguise or a wet blanket. Sometimes you have to do an extra job to pay this kind of small loan with 600% annual interest rate. So, it is not a wise decision anyways. However, sometimes the situation becomes unavoidable, and you are forced to get it due to severe financial conditions. In such cases, I would advise you to pay your payday loan as soon as you receive the next payday.