Online payday loans are incredibly useful for when payday is still far away, but you need cash immediately. However, most people don’t know what payday loans are or if they’re the right financial option for their needs. Read on to learn about online payday loans and how to determine if they’re right for you.
What exactly is a payday loan?
Also known as a short term loan, cash advance, fast cash, cash loan, bad credit loan or deferred deposit, a payday loan is an unsecured loan, usually for a small amount ranging from $100 to $1,500, that is intended to be a temporary solution to meet your financial needs until your next payday. Another way to look at a payday loan is that you are making out an electronic check for the amount of the advance, plus a fee, to be held until your next payday.
Payday loans are designed to get you through a financial crisis or to help pay unexpected expenses, such as medical bills or car repair costs until you receive your next paycheck. They are an invaluable financial tool that can help nearly anyone in a tough financial situation.
What are the requirements?
There are very few restrictions to receive a fast cash advance, but the minimum requirements are:
– You must be at least 18 years of age.
– You must have a job (or be able to prove you have another regular source of income).
– You must have an active open bank account (this can be a checking or savings account).
There also might be additional requirements depending on the lender that you choose. Other factors such as income, past payday loan history, direct deposit of your pay, and the state you live in, can also affect whether you are eligible.
The more up-to-date, honest and verifiable information you put on your loan application, the more likely you are to be approved. For instance, entering a cell phone number instead of a home phone number makes it more difficult to verify your information and many lenders will not accept applications that cannot be verified.
No doubt, Payday loan is the best solution for getting emergency funds. But it can be so risky in some situation. If you have caught in payday trap you can seek help for your payday loan consolidation.