Thousands of different companies now offer payday loans. As a result, it can be quite daunting to find the right one. Each of these companies offer different pros and cons, and you need to be able to narrow it down to the lender that will offer you the best deal. As a rule of thumb, you should look for a payday loans direct lender for this.
What Are Payday Loans?
Payday loans are, by their very nature, short term loans. Essentially, they are small amounts of money that are provided to you until your next payday, at which point you pay back the loan principle (the amount you borrowed), as well as interest. In many cases, you will be able to roll your loan over, but this is not advisable. This is because these loans have very high interest rates, and you will quickly find yourself paying so much in interest that you will have paid more than the principle and then some. This, in turn, could lead you to find yourself in a situation of unmanageable debt.
What Are the Benefits of Payday Loans?
Payday loans have gotten a very bad name, particularly because of these incredibly high interest rates. However, they have some very clear advantages as well, namely:
They are not based on whether or not you have a good credit rating.
If you are accepted, you will have the money in your account the very next business day at the latest.
These loans are designed for people who have an immediate financial need. This is why even people who have good credit sometimes apply for them, because they can have the money in their account within 24 hours.
Am I Eligible?
While payday loans are easy to apply for, they are not available for everybody. There are a few requirements that you will have to meet in order to be accepted. These are:
You must be employed, which makes sense since you have to pay the loan back on your next pay date.
You must be at least 18 years old. This is a national legal requirement. Some payday lenders even want you to be at least 21 years old.
You must have an active and valid bank account. This is because the loan must be deposited in a bank account and because the repayment will be taken out of your account automatically.
You must be a legal and permanent resident of this country.
As you can see, these are not overly stringent requirements and most people will therefore be able to successfully apply for one of these loans. It is, however, very important that you consider your options carefully. Loans are financial commitments and if you are currently in financial difficulty, you may find yourself in the exact same situation once you have paid back your loan. However, if you do need money quick, for whatever reason, these types of loans may be the perfect solution.