Payday Loans: What You Need to Know

Life happens, the unexpected occurs, and you may find that you need a little extra cash on hand. If this is the dilemma you find yourself in, then you may want to consider a Payday Loan. This is a short-term loan that one can qualify for in minutes and often have the funds available to them within 24 hours. This type of financing is designed to assist the borrower in a time of need.

4 common application requirements: 

  • Be at least 18 years of age
  • Proof of income
  • Active checking account
  • Valid identification

Not all states allow this type of financing, and the ones that do, have different regulations. It is important to know that Payday Loans will have a limit on average between $350 to $1000 depending on where you live within the United States. Before applying, double-check the top limit your state will allow to make sure it’s possible to get the amount that is needed. Keep in mind that the total sum you qualify for is determined by the online payday loans direct lender you are working with.

The short-term nature of this loan means they come with a high annual percentage rate (APR) that can range from 250% on up, with the average being around 400% to 600% contingent upon the length of the loan. This is one of the top factors to carefully consider before applying. It is important to make sure that you can easily pay back the loan within the allotted time.

Who should consider this loan?

If you have a stable income and are financially responsible with your money, then this type of financing can be helpful when the need arises. The easy qualification process and quick turnaround time can make getting needed cash stress-free.

Who should not consider this loan?

Payday Loans vary in length with an average of 10 to 35 days. If it may be difficult to pay back the money within the time frame a lender offers, you should consider a different option. With the high APR, paying the interest on this type of financing can and will be costly in the long run.

In conclusion, taking out a loan does not have to be a stressful process. Remember, financial institutions are here to help you in times of need. Doing a quick search through a company’s Frequently Asked Questions (FAQ) section online may provide all the answers to the questions that arise. If you still have concerns that need to be answered, do not hesitate to contact them.