If cash shortage looms large at the end of the month and you have a couple of weeks left for your paycheck to land into your account, these short-term loans can be a savior. Payday Loans are short duration loans, mostly for smaller amounts, say a few hundred dollars. They are due for repayment when the payday arrives along with a fee. These provide good financial support when you need it most, maybe for an expense that can’t wait till payday or to meet any other emergency. For this, you should provide the lender a post-dated check or authorize him to electronically debit your account when the amount becomes due.
The first thing to look into before taking the loan is the rules of the state you belong, regarding the short term loans.
Why should you prefer these loans?
- You get the advance as soon as you may need it, say for example within 24 hrs also. The lenders are ready to give you cash at very short notice since the amount involved is not very large.
- These loans are available without any hassle of filling up a lot of forms or checking your credit standing, etc.
- The lenders do not ask for any collateral security for the loan they provide and give you the cash advance straight away. So you don’t have any fear of losing your property given as security, unlike the traditional loans.
- Since you know your cash limits and what goes into your account on payday, you can take up an amount that is easier for you to repay.
- There are times you end up being embarrassed by sources known to you when you approach them for loans. These can be avoided and you can be at ease.
- These advances do not have an impact on your credit score since there is no need to provide reports to the top national credit reporting companies.
- You can easily locate a lender at the storefront or these days they are also available online. Many new apps have also come up to make the process of getting an advance much easier.
- In case you are a person with a poor credit history, you will face a lot of struggles to get through a loan process. But these short term loans do not carry any such hurdles.
Make sure you choose the lender registered with the Financial Conduct Authority that imposes regulations over the short term loan industry and monitors them closely.