Sometimes, certain types of jobs require you to be up to date with your clothing and your payday check doesn’t arrive always on time for the new season sales. However, there are options for you to surprise everybody with your new outfit even if you don’t have cash at the time. The needed cash for purchasing your new outfit can be easily obtained by getting a payday loan. These loans are however different than the rest of the loans and provide many benefits and some drawbacks too that you need to take into account if you decide to finance your purchases with them.
Fast Approval You obviously need money fast, you can’t wait a month for approval because otherwise the latest trend won’t be so latest. Fortunately these loans are approved in less than 24 business Hs. From the moment you apply till the money is deposited into your bank account, it never takes more than a single day.
This is due to the fact that there is no paperwork to be done, and almost no documentation needs to be submitted and analyzed. Most online payday loan lenders won’t even require that you send documents by fax. They’ll just check the info you submitted and pre-approve your loan right away.
Few Requirements One of the most interesting characteristics of these loans is that there are no harsh credit or income requirements for approval. Moreover, those with bad credit, no credit at all or even those who have gone through a bankruptcy process, can easily get approved for these loans. Most payday loan approval processes won’t even require a credit check.
In order to get approved you just need to show proof of a steady job (a copy of your pay checks or any other backing up documentation will do) and you need to have a bank account where the money will be deposited when you get approved and debited when the loan payments is due.
Loan Amount Though, for obvious reasons, these loans don’t come with high loan amounts, truth is that for the purpose we are analyzing on this article, the amount that can be obtained from a pay day loan is good enough. The loan amount of payday loans ranges from a couple of hundreds to a couple of thousands and that, for purchasing clothing, is more than ok.
The reason why these loans don’t come with high loan amounts is that given that there are no credit checks at all required for approval, the risk involved for the lender is very high. And one way of reducing the risk involved in the financial transaction is to limit the amount of money that can be obtained through these loans.
Interest Rate For the same reasons explained above, the interest rate charged for these loans is rather high. Actually the interests usually take the form of a fixed fee which is debited along with the principal of the loan at the time of repayment. But taking into account that you might use this method of finance two or three times in a year at most, it doesn’t seem such a heavy burden.
Sarah Dinkins is an Expert Loan Consultant at Badcreditfinancialexperts.com where she helps people to repair their credit and to get approved for home loans, unsecured personal loans, student loans, car loans and other types of loans and financial products. If you need more useful articles find them here with more professional advice on the financial field.