The long awaited paycheque is finally here. However, the reverie with the paycheque is not expected to last long, because of the various expenses yelling for their fulfilment. Having spent a major part of his income the individual is left with nothing or very less to tend even to the day-to-day expenses. Had fasting or some other ways of postponing the needs been of help, the individuals would have readily tried them. However, they rarely do help.
A more viable solution for these mid monthly blues are payday loans. Payday loans offer a solution to the problem. Instant cash is made available through payday loans to enable borrowers meet the needs.
Fast approval of payday loans:
It is often contended as to why people opt for payday loans when other loans can also be used. This is because the process of approval of other loans is long drawn as various valuations and checks are involved. Payday loans, being needed for urgent needs cannot do with the delay. Hence payday loans, that are approved in as little as 24 hours.
Payday loans are short-term loans that are repayable within the next payday. Since they are taken in order to meet the day-to-day expenses, the maximum amount lent is £500. Payday loans are secured loans having the next month’s salary as the collateral.
Eligibility for payday loan:
Thus, it can be ascertained that employment is a prerequisite for the payday loans. Most lenders desire a borrower to be employed for a period of at least 90 days. An unemployed person may not qualify for the loan. Along with employment, the borrower will have to fulfil the following basic criteria for getting the payday loan:
o The salary or income received in any form must be deposited directly into the bank.
o The borrower must have a bank account.
o The borrower must have a chequebook or debit card.
The process of payday loans starts with the application by the borrower. With more and more lenders offering their services through internet, borrowers’ task has been eased. An application faxed to the lenders gets a much speedier response. The money is transferred to the borrowers’ bank account through wire transfer.
Types of payday loans:
There are various types of payday loans doing the rounds of the loans market nowadays. Some of them are as follows:
INSTANT PAYDAY LOAN
Some lenders term their payday loans as instant payday loans. In fact, payday loans are designed to offer fast cash. Thus terming ones product as an instant payday loan is like adding synonymous adjectives.
NO FAX PAYDAY LOAN
A no fax payday loan requires the borrower to have a higher credit score. A high credit score is seen as a higher credibility. The value of the property must be about two to three times of the annual income received by the borrower. The more is the value of the home, the more will the borrower be able to receive as payday loans.
ONLINE PAYDAY LOAN
Online Payday loans are the loans that are available through the internet. These loans are quickly approved to enable borrowers to have instant cash. Borrowers apply by filling the online application form available on the website of the loan providers.
However, the caution “think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it” must be strictly adhered to. A payday loan cannot be used every time a financial crises crops up. Large number of loans will require a larger repayment, thus making them difficult to be borne. A more judicious use of the monthly income and the habit of saving will help in improving the financial scenario to a large extent.