Consider a payday loan from a reputable lender if you need some quick cash. These loans allow borrowers to quickly obtain the funding they need for their short-term financial needs. The best payday loans are short-term and highly flexible in terms of repayment schedules, allowing borrowers to pay off their loans within only nine months. Payday lenders offer installment plans and “walk-in” loans that can be paid back over time without shame or embarrassment. And with competitive interest rates as low as 36 percent APR, moneylenders have an appeal. Yet, payday loans are not a beneficial financial tool for everyone.
These small loans might seem the right thing in a difficult financial situation. Still, they can also become a nightmare of debt and missing payments if you fail to follow the simple rules of responsible payday loan borrowing. Taking out one of these unsecured cash advances requires you to verify your employment status, income, and living expenses amount. In other words, you must show that you will have enough money available at the end of every month to pay back the short-term loan with interest. In addition, payday loan lenders require that you be at least 18 years old and have a checking account to obtain one of these cash advances.
Whether you apply for a Payday Loan or an installment loan, the lender will ultimately require verification of your work status, budget, and expenses. Because this process is typically completed online, borrowers need to double-check every detail of the application before submitting it for approval.
Payday loans are short-term; many borrowers take out several loans over a few months. Moneylenders rely on this characteristic of payday loans to extend their revenue stream.