When unexpected circumstances require finances that you are unable to come up with, it can be a dilemma. If finding funds to alleviate the problem is proving to be a Herculean task, you may need to take out a loan. However, traditional banks normally require you to have a good credit standing, otherwise, any loan application you submit may be rejected. They also require a form of security before releasing any loan amount. If you are one of those people whose credit scores prevent you from taking out a loan from the bank, you may want to consider payday loans, or check into hardship loans.
Payday loans are short-term loans that can provide necessary small funds to those who cannot get a loan from any banking institution. It is a type of loan that is steadily growing in popularity. Today, this type of loan can be seen everywhere, even online. And with the competition increasing in this market, there are now payday loan lenders with no employment verification or credit checking as part of the deal.
Typically, these lenders would only require prospective borrowers to be at least 18 years of age, have a stable job or source of income, an active checking account which is at least 6 months old, and have proof of residency of the state where he or she is applying for a payday loan. As long as the applicant fulfills the basics aforementioned, all that needs to be done is to fill up an online application form, wait a few minutes for approval, and once approved, expect the loan amount to be deposited into your bank account within 24 hours, sometimes even less. Loan amounts vary from state to state, with numbers ranging from $100 to $1,500.
Sounds good, right? The disadvantage, though, is the high amount of fees that lenders charge consumers with for the loan. However, these interest rates also vary according to the borrower’s credit history. If the potential borrower has a good credit history, the interest rate is competitive. Still, loan amounts are regulated per state, and are usually only as high as $1,500 at most. This small amount can also be attributed to the fact that these payday loans have a short repayment time – usually a couple of weeks or so.
These days, with the ever-increasing number of people who are having a hard time coming up with funds to pay for the necessities, an online payday loan is not only helpful, but convenient.
For additional information check out the Mad Progress finance section.