There are a number of uncommon facts about payday loans that you should really know about. These facts can help you make the right decision if you are still on the fence about this option. Most people don’t know half of what they should about these loans, and it hurts their ability to make an informed choice. The more educated you are on payday loans, the easier it will be to get exactly what you need when it really matters.
- Even People with No Credit can get Approved
Bad credit or even no credit applicants still have a chance of being approved for a payday loan. Just keep in mind that these lenders do run credit checks on every single applicant. Some people don’t get approved, but it is rarely because they don’t have a high enough score.
A few black marks on your credit report could be enough to get your application turned down. This is especially true with foreclosures and loan defaults. The good news is that if you are young and don’t have much of a credit history, you can still possibly get approved.
- Not Everyone is Forced into a High Interest Rate
Despite what so many people seem to believe about payday loans, not everyone who gets approved has to pay an exorbitant rate. The truth is that you can save yourself a lot of money by shopping around and looking at your lender options.
Not all private lenders that deal in payday loans will give you the same rate. This is why it is so important that you do your research. You will need to compare rates so that you don’t end up spending more than you really have to.
- It’s all done online
While there are still quite a few brick-and-mortar payday loan places across the United States, it is a lot easier to just do it all online. This will allow you to get the funds you need much faster than if you were to do everything in person.
All you have to do is just fill out an online application and wait for the lender to reply. If you get approved and accept the lender’s offer, you can have the money transferred into your bank account. This makes the entire process of getting a payday loan very easy and incredibly convenient.
- You can get more than 2 Weeks to pay back your loan
Depending on how much money you borrow, you may be able to get more than two weeks to pay back everything. This largely depends on the lender, so you have to keep that in mind. You’ll also want to remember that a longer payback period isn’t always better.
When you have a very long time to pay back a relatively small amount of money, you’ll end up spending quite a bit on interest alone. There are also other fees that you will need to consider. Think carefully before deciding what the payback period for your loan is going to be.
- Self-Employed People can get Payday Loans
Even people who are self-employed can obtain a payday loan, provided they meet the minimum requirements. It will still be necessary to show proof of your income when filling out your loan application. You will find that just about any private lender is amenable to self-employed individuals.
- You can get your Money the Same Day you Apply
It is extremely common for people who get approved for a payday loan to get their funds the same day they fill out the initial application. Private lending companies tend to work pretty fast to ensure that applicants receive their funds as quickly as possible. Just keep in mind that some lenders are faster and more efficient than others.
- No Collateral is Required
Payday loans are classified as unsecured personal loans. This means that you don’t have to put up any collateral to get your money. It also means that these loans are very low risk. You can borrow the funds you need without having to worry about losing anything important.
If you are looking for a way to borrow money without putting any of your property at risk, a payday loan is an exceptional solution. No private lenders will ever ask you to put up any sort of collateral in order to get approved.
Now that you know a bit more about payday loans, you can make a choice that is best for your particular situation. These loans can help virtually anyone who is struggling financially. If you are out of work and need to get by, this is an option you should think about. An overwhelming majority of people who take out these loans end up paying them back on time without incident.