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Everything You Need to Know About Payday Loans

We live in a world nowadays where borrowing money can seem all too easy. With the evolution of not only the internet, but also all of the other technological advancements around us such as smartphones, it’s made it easier than ever for us to connect to the world around us – even in the financial sector. Although occasionally thought to be controversial, payday loans are in fact one of the most popular methods of borrowing money in the world right now. Payday loans actually provide those who perhaps wouldn’t have access to other means of borrowing money with a viable service, however as with any financial transactions, caution should also be exercised. If you’re feeling a little disillusioned or confused with the world of payday loans right now, then here is everything you need to know about them.

Everything You Need to Know About Payday LoansImage by Gerd Altmann from Pixabay 

What is the Criteria for Applying for a Payday Loan?

When it comes to getting a payday loan, the vast majority of people will qualify. It’s easy enough to find where to apply for a payday loan, and you can get a payday loan online from Personal Money Network. So long as you have a fixed monthly income and a current checking account.

One of the good things about payday loans in comparison to other sorts of money-borrowing, is that your eligibility is not entirely determined on your credit score, so if you unfortunately have bad credit, or perhaps have even no history of credit at all, you can still apply and obtain a payday loan. Once you’ve applied, the process is extremely quick too, and most of the time you’re told instantly whether or not it’s been accepted.

What Kind of Loan is a Payday Loan?

If you’re borrowing money through the help of a payday loan company, then this is known as a short term loan, which usually comes with a fee.

This means the loan needs to be repaid by a set date, and it tends to be around the next time payday comes around. This means they’re ideal for paying out for an emergency that you might not instantly have the cash for, for example a vehicular or household repair. Not being judged by your credit rating means payday loans are there to help out just about anybody who needs it – whether you’re purchasing a new hoover or contributing to a small business start up.

Another positive about these loans, is that they come with no hidden charges, and the borrower therefore knows upfront how much they have to pay, and when by. As with any form of loan, if not repaid it’s possible to get into a spiral of debt, so it’s important to only take out loans that you can afford. This isn’t just specific to payday loans, however. The same can be said for any kind of money lending!

How Can I Find a Payday Loan Company?

Once upon a time, you’d have to visit a payday loan shop in order to acquire a loan. However, as previously mentioned, we live in the wonderous age of technology now – so things just got a little bit easier! All you need to do is have a look on the internet.

As with anything, it’s a good idea to shop around online before deciding on a particular payday loan company. For example, some companies might offer a special introductory price or reduced fees. After all, every little saving helps!

The process goes as so. The loan is agreed upon between the borrower and the company, and then the funds are placed into the borrower’s bank account. Then on the agreed date (usually around the next payday), the funds are then taken from the borrower’s bank account, along with the fee they paid to use the company. If used correctly and within reason, payday loans are actually an easy, cheap and highly effective form of loaning money for the average person.

Are They Secured?

Last, but certainly not least, no, payday loans are not usually secured.

Because of them being unsecured, it means that you don’t need to provide any sort of assets to back up the loan. Some other types of loans require the borrower to leverage assets that you own such as cars and houses in order to secure the loan – but this isn’t the case with payday loans. As we’ve mentioned previously, the criteria for applying for and being accepted on a payday loan is minimal.

Overall, if borrowed realistically and paid off on the required date, payday loans can be considerably helpful for the right people. As with any financial matters, as long as you do your research accordingly, you’re likely to be fine.