Payday loans have become very popular among salaried people in the US. A payday loan is usually a short-term loan that is given to an employed person. Often, the loan is small in size that ranges from $100 to $1,000. It is meant for emergencies that cannot be put on hold until the next payday. The beauty of this loan is that money is availed in one’s bank account the same day that the loan is applied for. It is very convenient in the event of an emergency. The application is usually made online. Once they are approved, money is credited directly to the applicant’s bank account.
To qualify for a payday loan, one must meet some conditions. These include:
- Must be a US citizen.
- Must hold a valid bank account.
- Must have been in employment for at least 6 months.
- Must be in stable employment earning $1,000 or more per month.
It is evident that one does not need much to start getting these loans. If you meet the above requirements, the next step is usually filling up the applications forms then submitting them for review. Once your case is approved, money is credited to your account.
Several benefits come with taking a payday loan. Some of the most common and obvious ones include:
Fast processing
Usually, a payday loan takes less than a day since the time of application to the time that the money sits in one’s account. This is especially suitable if one has an emergency that requires immediate attention.
Few requirements
Unlike in other loans, a payday loan has very few requirements. Provided you be in stable employment, you can get the loan. The few requirements make it suitable in the event of an emergency since you are sure that it will be processed within a short time.
No collateral required
The second most attractive feature of a payday loan is that one is not required to provide collateral for the loan received. This means that even those who do not have any security can benefit from this loan provided they have a stable income.
From the above, it is evident that a payday loan is a suitable loan for short-term financial needs. However, due to its easy accessibility nature, they are usually priced very highly by carrying high interests. It is therefore advisable to take care when subscribing to them. It should only be done as the last option so as not to fall into the cycle of taking payday loans every time. However, when used properly, payday loans are known to help out especially in the instances where one is in real need of cash.