Payday: A Loan For Shorter Period
When you face unplanned and unpredictable shortage of money, payday loan is the best required option. This loan requires less formalities and get approved in few hours. This loan is simple and straightforward if used in appropriate circumstances. Mostly those people approach for payday loans who have fixed salary and fixed expenditures but due to unplanned expenditure in any month they need money that too only for short time period until they get their next salary. For such people payday is the best option.
You can call simple payday loan by other names such as cash advance loan, short term loan, salary loan etc. These loans have two drawbacks i.e. you get it at high interest rate as well as this loan is available for short period of time. This loan is provided for 15 – 20 days or maximum for one month so bank does not seek your credit rating. You only need permanent source of income and permanent bank account to qualify for this loan.
This kind of loan does not add to your market credibility, it’s just a give and take for short time period. The best way to achieve payday loan is online application, these portals are available for 24/7 and within 5 min you get approval for such loan, by filling a form and few queries. The process of repayment is as simple as that mostly amount will be deducted from your permanent account through electronic withdrawal.
There are some major criticism about payday loan. People believe by charging 35 to 40 % rate of intetest these companies are draining money from low income group. When people have lost all other sources to borrow money they approach payday loan but higher rate of intetest converts this short term loan in long term loan. Simple payday is actually beneficial if you have thorough knowledge of the scheme. Do not become a resist and desperate borrower, if you are not getting money from anywhere filing for payday loan is not advisable.
You must file for such loan in quiet urgency and if you have fixed income source. Before using any borrowing facilities you must consider its upside and downside consequences. This loan is helpful when you are managing your finances well but you face any disaster in a particular month. At such cruicial time borrowing money from payday having intention to repay it at first stroke is advisable.
You get eligibility verification from payday loan if you have a permanent job, minimum three month’s experience, an account where you receive your wages from your employer and last but not the least they offer you 80% amount of your permanent wages. You must keep one thing in mind that if you somehow miss out the payment of this loan your small loan soon will be converted into a gigantic loan.
Reason is that what you owe from this company at the failure of repayment you may be charged just double of the owed money. That’s the reason why business of payday is on the air. Always keep in mind that it is the positive aspect of any financial help but only if you are deadly in need of money, on the other hand do not underestimate the drawbacks of this loan. In short, use this tool for better financial management.