In this Article, We Have Answered What Is a Payday Loan?
You just had a costly unexpected expense pop up out of nowhere. You have no idea how you’re going to pay it.
Have you ever been there? Are you there right now?
If so, you might be wondering, “what is a payday loan?” Would a payday loan be right for you?
People often seek payday loans when they need cash fast, but you might have questions about these loans. Here are some of the top questions people have when evaluating payday loans and the answers to these questions.
What Is a Payday Loan?
A payday loan is one of the easiest options you can use when you need cash now for any reason. A payday loan is a cash advance you can apply for based on your paycheck amount and schedule.
To get one, you’ll have to talk to a payday loan lender. The lender will need some basic information before approving it, including a copy of your recent pay stubs.
Your pay stubs prove to the lender that you have a job, and they also show the amount of income you earn. The lender bases your loan amount on your income and can approve the loan in just minutes.
There are no other loan types available that are comparable to payday loans. These loans are simple, fast, and useful for situations when a person needs cash right away.
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Do You Need Good Credit to Get One?
The next question people ask is if they need good credit to qualify. If you have ever applied for a loan in the past, the lender probably pulled your credit file to check your score.
The good news about payday loans is that this is not a necessity to qualify. You do not need spotless, perfect credit to be eligible. You won’t even need to prove your credit when applying for one.
Did you know that approximately one-third of adults in this country have bad credit? If you have bad credit, don’t worry. It will not affect your ability to get a payday loan.
Payday loan lenders complete steps when reviewing applications, but their steps do not include a credit check. Your credit doesn’t matter to payday loan lenders. Therefore, you can qualify for a payday loan no matter what.
You can have good credit, bad credit, or no credit and still be eligible.
What Are the Terms for Repaying the Loan?
The last question people ask about payday loans is the terms for repayment. There are two primary things you should know about the repayment terms.
The first thing is that these are short-term loans. You might owe the balance in full within only two weeks of the date you took the loan.
The second thing to know is that the lender might automatically take the balance on the due date from your bank account. You might have to agree to an EFT from your account, or you might have to provide a postdated check when taking the loan.
Learn More About Payday Loans
Getting a payday loan can provide the solution you need for a financial emergency. Do you understand now what a payday loan is, or do you have more questions about, “what is a payday loan?”
If you want to learn more about payday loans before applying for one, check out our website for more helpful information.
What Is A Payday Loan Explained In Video In Detail
What are payday loans used for?
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