A payday loan is a high risk, short term loan that is designed to help you when you are between paydays and have a financial emergency such as an unexpected car repair or medical bill. Most payday loan lender will loan you up to $1,500 with no credit check, collateral, or cosigners required. Some payday loan lenders on the Internet don’t require you to fax them any documentation.
Payday loan lenders are also available in physical loan offices but the quickest, easiest way to apply for a payday loan is on the Internet. You can apply for a payday loan by only filling out a one page form online with your name, address, phone number, SSN and banking information.
In order to be eligible for a payday loan on the Internet you should be of citizen, be of legal age, be currently employed or have another source of steady income, have an active bank account, have a valid driver’s license or another form of valid identification, and have an active bank account. Your payday loan will be approved in a matter of minutes and once approved the lender will transfer electronically your money directly into your checking or savings account that day and sometimes within minutes.
Payday loans are intended to be repaid no later than your next payday. Because payday loans are considered high risk loans they have an interest rate that is higher than traditional loans. However, they are still considerably less expensive than paying for your emergency expense with your credit card. You should make every effort to pay back your payday loan on time. If you can’t pay the loan back on time, most payday loan lenders will offer you an extension of time for you to repay the loan. However, the interest rate will be higher than the interest rate for your original loan and this can become expensive and result in financial problems for you in the future. For this reason, time extensions aren’t recommended.
When you are between paydays and are experiencing a financial crisis, a payday loan can be a lifesaver. However, since different payday loan lender charge different interest rates, you should do some research and shop around on the Internet to find a payday loan lender that charges the least interest rate. Before signing a loan agreement you should also make sure that you read all of the terms and conditions of that loan agreement to ensure that you know what you are getting into.