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?

Explaining 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. The loan can range from a small amount such as 80 or 100, to something much larger, such as 1,000.

You can use short term payday loans for just about anything. Most lenders do not require you to specify the purpose of the loan. Payday loans can be used for any expense including bill payments, automobile repairs, or even that last-minute holiday getaway.

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. Many are payable via debit card or cheque, and interest charges and other fees will undoubtedly apply.

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. In contrast to conventional loans, this type of lending does not require you to own your own home or have a particular income level. 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.

Among the pieces of information you may be asked to provide are current paystubs, verification of your address, or evidence of valid bank accounts. 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. Even those with bad credit ratings including insolvencies, bankruptcies, defaults and late payments can often still meet the qualification requirements for this short term loan type.

When filling out these forms there is no need to worry since they are not lengthy or complicated to complete; just drop them in the mail or you can fax them immediately to your lender for faster approval.

While short term payday loans are a welcome and much-needed relief in times of financial distress, it is very important that you have a viable repayment plan in place. Naturally you will want to avoid any future financial difficulties if at all possible.




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