Payday Loans Information Library

PAYDAY LOANS

What is a Payday Loan?

A payday loan is a fast, short-term loan designed to cover your money needs until your next pay day. The loan itself is 'fast' – it usually has a term of between 2 weeks and 31 days (1 month), which means it is ideal for emergency / unexpected situations where you just don't have enough cash to pay – including an unexpected doctor's bill or damage to your home (a broken window that needs fixing).

Payday loans are personal loans (they are not tied to a physical asset) and are often offered even to borrowers that have a bad credit score.

What is the Loan Structure?

Here is the basic structure of a payday loan:

• Application (usually online) to a payday lender
• Loan arrives in your bank account same day/next day
• Use loan for any purpose
• Repayment after 2 weeks / 1 month plus interest

...and that's it! Now, find out who offers them and how to get one...

Where Can I Get a Payday Loan?

Payday loans are not offered by your regular bank. They are provided by independent lending firms, which usually operate simple online application / management of the loan.

Most borrowers are happy to be able to borrow without going to their regular bank – mainly because the bank is often strict about your credit history and may have turned your application down in the past.

Have a look on Bad Credit Good Solutions for some payday loans – you can apply directly via our site at no extra cost.

Who Can Apply?

Applying is dead easy and the great thing about payday loans is that the lenders are more sympathetic to people with poor credit scores. However you will need to fufil some basic criteria...

What Matters:

You will usually need to fulfil these points...

• American citizenship
• Social Security number
• Live in the US (with a permanent address)
• A working bank / checking account
• Regular income
• Minimum monthly income (variable, depends on lender)
• Minimum age 18 years / 21 years (depends on lender)

What Doesn't Matter:

These points do depend on the lender – but in general you can still get your loan even if these apply to you...

• Your credit rating (even if you have low/no credit score)
• Defaults, debts
• Self employed (depends on lender)
• Unemployed (this is rare however – check with the lender)
• Not being a high earner (the min. monthly income required is usually low)

If you are happy that you fulfil the basics, you're ready to apply! Most payday lenders have a short online form which you can fill out – the decision is made in less than a minute in most cases! Some lenders offer a free loan calculator tool, which allows you to check how much money they could offer you and at what interest rate.

What are the Risks of Payday Loans?

Payday loans are great for people who have problems getting loan via the 'normal' route, and they are great for people who need cash fast. However there are always rumor mills discussing the 'risk factor' of payday loans. Why?

Well, payday loans do carry an element of risk in that they need to be paid back quickly. Oftentimes, payday loans carry relatively high interest rates – so you could be paying back a large chunk more than you borrowed in the first place. It is normal to be paying back around $30 for every $100 that you borrow.

Not surprisingly it is therefore a wise idea to pay back the loan as fast as you can – to avoid being stuck with heavy interest on your shoulders. If you were already in debt before you took the loan, you can risk landing in more debt trouble if you struggle to repay this loan – so make sure you are fully aware of the risks before you apply.

What are the Benefits?

There are plenty of benefits with payday loans.

• No credit checks OR credit check but doesn't influence the decision
• Access to cash fast
• Same day / next day money in your account
• Can use the loan for any purpose
• Borrow fast, repay fast – the loan is finished in around a month

One of the main benefits is that almost anyone can apply – regardless of credit score. So even if you have problems with your credit history or are often rejected for credit you will likely still be able to get a payday loan.

So, if you really need cash, and you need it fast then take a look at the payday loans comparison area on Bad Credit Good Solutions. Remember – before you apply for any credit product, it is worth thinking about whether you are suitable for it. If necessary, seek independent financial advice from an expert.