Tuesday 1 May 2012

Short Term Payday Loans: Responding To Your Questions

By Ruth Williams


Recent economic downturns have caused greater numbers of people to have trouble meeting their financial obligations in between pay cheques. Though most of us try to use good sense when it comes to our finances, emergencies do happen, causing a need for the use of short term payday loans. How do such loans work, and do they represent a good method of solving our immediate cash flow issues?

What are Short Term Payday Loans?

Short term payday loans are cash advances given by a lender essentially bridging the gap until the next payday. The available loan amount will be contingent upon the lender's own terms as well as considerations that may include the size of your pay cheque. Some loans may be as little as 80 to 100 while others are for as much as 1,000.

The uses for short term payday loans are virtually endless. Most lenders do not ask what you want the loan for. These types of loans can be used for anything from paying bills, car repairs, or even a much needed holiday.

Loan repayment terms are specified by each individual lender, and each payday loan must be paid in full before another payday loan can be obtained. Most can be repaid by cheque or debit card and there will be interest fees and charges to take into consideration.

Who Is Eligible to Apply for This Type of Loan?

Individuals of all types sometimes run into situations in which they need to utilize payday loans. And, with this type you don't have to be a homeowner or earn a certain amount of money unlike traditional loans. To qualify, all you will need is a regular, proven income and an active bank account along with a debit card. There may be a few cases where you will also need a cheque book.

Required documentation may include proof of residence, recent payslips, and your debit card or a copy of a recent bank statement. Your information will not be disclosed if you get a payday loan with a reputable company.

Credit History When Obtaining Payday Loans

In addition to being able to receive cash quickly, another very strong draw for short term payday loans is the fact that a credit check is not required. It is possible to secure this kind of loan even if your credit record includes bankruptcies, late payments, defaulted loans and other serious blemishes.

These loans don't have long and difficult applications and the lender accepts mail and fax while determining eligibility.

Even though it is definitely true that short term payday loans are appreciated and required in some situations, be certain you have a method to pay back the loan. Of course, it will be in your best interest to steer clear of financial problems in the future.




About the Author:



No comments:

Post a Comment