Sometimes, you reach the middle of the work week and find yourself low on money, but you don’t qualify for a bank loan. In this case, expertpaydayloans.com may be your best option. Learn more about how a payday loan work and the benefits of getting one.
How Payday Loans Work
A payday loan is a cash advance you borrow against your paycheck from a fast money lender. The lender chooses the amount you qualify for and presents you a check to sign with a promise to pay back with your next paycheck. The borrowed amount is deducted from your checking or savings account when it comes due. A typical lender allows you to borrow from $100 to $2,000.
You commonly have 30 to 60 days to repay the loan based on lender terms. Interest rates vary, but the typical rates range from 15% to 30%. For example, you borrow $200, you pay back $215-$230. You won’t be charged interest if you pay the loan on time. However, lenders may charge an application fee in addition to the borrowed amount.
A payday loan is attractive to consumers because it doesn’t have strict qualifications. As long as you haven’t taken out other payday loans, your chance to qualify is higher than the standard personal loan. Since the loans are short-term, the lenders are more interested in your ability to pay and keep up with payments than your credit score. The most qualifications you need are to be a U.S. citizen at least 18 years old with a job for a specified time period, a savings or checking account, and pay stubs to prove income. Once you get approved, the lender deposits the money in your account.
A benefit of a payday loan is your bank account information stays safe. In addition to not needing good credit, the applications are easy to fill out, and you don’t have to wait days for approval as with a standard personal loan. You could see the money in less than 24 hours. State laws prohibit consumers from being charged unfair interest rates.
However, just because you don’t need good credit does not mean you should miss payments. When you apply, make a plan to repay the loan on time and never take out more than you can afford. Check out several lenders and compare interest rates before deciding on a lender. Read the fine print before you sign anything. Payday loans can work to your advantage when you use them properly.