What do you do when you have an unexpected financial emergency that needs to be resolved within 24 hours? You have asked friends and family to help out, but unfortunately no one is able to assist you, and your credit cards are maxed out! It sounds like a loose loose situation, but there is a way out, and that is through a payday loan.
What is a Payday Loan?
A payday loan is similar to a short-term loan in that you pay the loan amount back within a short period of time. However, the main difference is that you can only borrow as much as your next pay check and it is paid back on your next payday. For example, if you need a $2000 loan but you only earn $1000 per month, your application will be denied for that amount, but approved for $1000. In most cases, if you are unable to repay the loan on your next payday, you will pay a fee to the sum of the interest payment.
How to Apply For a Payday Loan?
The majority of payday loan companies only operate online; therefore, you will need access to the internet to fill out an application. The process is simple, all that is required is for you to supply personal details such as your name, address, date of birth and employment details. You will need to submit proof of your identity as well as proof of your monthly earnings, this is typically in the form of your last three payslips. Once your details have been confirmed, the terms of agreement are emailed to you, sign, date and send them back. Upon receipt, the funds are transferred to your account within an hour.
Final Thought
Although payday loans are not based on your credit score, those who default are entered into a national database and it will prevent you from getting another loan in future.