The basics of fast online payday loans
Payday loans are small, short-term loans that usually roll over until the next payday. The usual tenure of these loans is just a few weeks and such loans are taken to cover expenses until the next paycheck. These types of loans usually involve small amounts ranging from £500 to around £1,000. Payday loans are also known as cash advance and the interest rate is higher.
The loan process
To successfully apply for this type of loan, the borrower must have a permanent job and a working bank account, as payday loans are based on salary. To repay the loan, the borrower must issue a post-dated check or arrange for an automatic debit from the bank account to cover the amount borrowed and the interest on it.
In case the check is returned for any reason, there will be an additional charge for late fees and check bounce charges in addition to an additional interest charge. To help borrowers avoid these types of situations, payday loan lenders extend the option of deferment, where the loan repayment can be postponed for a certain period for a fee if the funds are not available for repayment.
To convince lenders of your work and salary, you may need to provide several of your most recent bank statements or pay stubs. However, there is no credit check, so people with stable jobs but bad credit can apply for and successfully get payday loans.
Now with the internet based application process, fast online payday loans have become a truly hassle-free way to get the funds you need. You just need to fill an online form providing details of your work, bank account.
If you qualify based on your salary and work, approval is given within minutes and money is credited directly to the account within 24-48 hours. In some cases, it is not even necessary to fax the documents. So you can avail of faxless payday loans as fast as a day.
Emergencies like unexpected guests, urgent unpaid bills, emergency repairs, sudden medical problem in the family, etc. come without warning and sometimes the liquid cash available is not enough to cover these costs.
It can be downright embarrassing to ask friends or family, and if credit cards are maxed out, there seems to be no way out. But with payday loans one can take care of such expenses very easily. Following are the benefits of payday loans.
o It’s fast, so money becomes available just when you need it.
o It is an unpretentious and hassle-free way of borrowing, which gives it the name faxless payday loans. You just need to fill the form and you can get the money you need the next day.
o No need to go from office to office. You can apply for a fast online payday loan right from your home or office.
o A good credit rating is not a prerequisite for approval. Therefore, people with bad credit history should not despair.
Although fast online payday loans are a great way to deal with sudden expenses, there is a danger of falling into the debt spiral trap if not managed well due to the high interest rate. To avoid such a situation, you should repay the loan as soon as possible.
If you think you can’t repay the loan within the specified time, ask for a deferment, but don’t make it a habit. Whatever the case may be, don’t let your check bounce as this can have legal consequences, in addition to the lender and bank charging you a hefty late fee and bounce fees.
Last but not least, manage your finances well by not indulging in frivolous expenses and saving wisely.
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