Payday loans are short
term loans designed to provide cash to people who need money in an emergency.
Short term loans are not a new form of credit. People have been using them for
many years. Today, the number of people successfully applying for and borrowing
short term cash lumps sums in increasing.
Private lenders who
offer payday loans are growing in number and a simple search online will reveal
how many different lenders are out there. If you are in need of cash and want
to consider applying for a payday loan, here are some simple pieces of advice
which may help you.
Payday loans require
borrowers to meet certain criteria, just like any other form of credit. If you
are in employment, either full time or part time, and you are earning a regular
wage you may be eligible to apply. You will need to complete an online
application which asks a few simple questions. This information will be used to
verify your identity and your employment status.
These are the most
common lending requirements for a Payday loan:
You must be over
eighteen years of age.
You should be in
employment, earning a regular wage. You will be asked to supply your employer's
details for verification purposes. The lender will not contact your employer.
They just use the information as a check.
You will need to
supply your date of birth, full name and your full address. This information is
required to prevent identity fraud. So it protects you as much as it protects
the lender.
You will need to have
a current, active bank account. Usually this is the account your wages are paid
in to.
That's it, after
entering all these details, you will be able to submit the application form and
within a few minutes you will have a response. For applicants who are
successful, they can have the money transferred to their accounts very quickly.
In many cases, the money is paid out within the hour.
The best payday
lenders will not harass you or contact you for no good reason. Once you have
signed the credit agreement, you will repay your loan when you are next paid.
It really is as simple as that. Good lenders will give you all the information
you require and help you by answering any questions you have.
But in general, these
loans are simple, fast and repaid very easily and quickly, usually within a
week or two. As a result, people tend to use them for sudden emergencies, and
then they simply repay them and get back to normal.
Payday loans are not
the best option for everyone however. If you are struggling on an extremely low
wage, or have long term debt problems that you are trying to tackle, a Payday
loan may not be the best solution. Always think carefully before entering into
any credit agreement.
Although Payday loans
are unsecured loans, if you default on one, it could affect your chances of
being able to apply again in the future.
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