What is Payday Loan and How It can Help You
Payday loans are loans used for paying small expenses. It is called payday loan because the borrower has to pay back on the pay day. Normally, the due date is 1 – 2 weeks away. If you need cash to cover small expenses, payday loans will suit your need. It is recommended that you do research before signing up with a creditor. If you don’t do research, you risk signing up with a creditor that charges high rate. Cash advance is only mend for covering small expenses. You can borrow a cash advance loan once or twice. However, you should avoid applying cash advance loan repetitively because this can incur serious financial problem. The fee charged by cash advance loan is expensive.
It is convenient to pay back the due to the creditor. Many employers pay employees through direct deposit into the bank account. The creditor will deduct the owed amount from your bank account so that you don’t have to make a trip to the local office. If you want to pay for your bill via other method, you should inform the creditor about it. Normally, there are several repayment options for the borrower to choose from. You should choose a repayment option that you are most comfortable with.
There are 3 – 4 requirements you need to comply before the creditor will consider approving your application. The most basic requirement is that you must be 18 years old. Besides, you must be a legal U.S. citizen and work at a U.S. company. Your monthly revenue should be not less than $1000. The minimum income requirement varies so you have to check with the creditor. The job should provide you with income every month otherwise the creditor won’t approve your loan.
The advantage of payday loan is that you don’t have to show your credit report. You don’t have to possess good or excellent credit level to get approved for the payday loan. In fact, if your credit report shows bankruptcy record, you will still be eligible for the loan. There is no need to fax a financial document because the creditor doesn’t need the information.
If your credit report doesn’t show any payment history, the creditor will approve your loan as long as you have a job. Before applying, it is wise that you visit the websites of 3 – 4 creditors and compare the rates. By performing the rate comparison, you will be able to find out which creditor offers the most affordable rate.
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