A payday loan may be an option for you if you need emergency cash for things like car repairs, dental work, paying utility bills, and other unexpected expenses. Normally payday loans come in small amounts. You can borrow anywhere from $100 and up to $1500. Most of the time, payday loans do not require a credit check. So if you don’t have a great credit score, this may be the short term solution for your money needs. Another benefit is that once you are approved, the money can be directly deposited into your bank account overnight so that you can access it the very next day.
On the flip side, most payday loans come with high interest rates. Compared to a traditional loan that you can get from a bank, the payday loan usually charges you a fixed amount for the money you borrow. The fee for a payday advance is typically 25%-30% of the amount of money borrowed. You can find out the exact amount in the disclosure from the lender. Be sure to carefully review all information before you agree to the terms. For example you could be charged $30 at the end of two weeks for $100 borrowed. If you miss the payment, then late charges will begin accruing.
The requirements are usually that you have to be over 18 years old, have a job and a bank account. Most of the time, you can apply for a loan online without having to fax in any paperwork. Some companies will also require you two provide up to two references. When you apply for a loan, you will be asked for a post-dated check or you can enter your bank account number and routing number which can be found on your checks.
Before you borrow any money, you should think about how you are going to pay it back. If you are not able to pay the loan, you could get yourself into a lot of debt over the long run. Therefore, payday loans should be used only for one thing only, that is as cash for emergencies.