Okay, just how much do you know about payday loans? They’ve been popular for about 10 years. Payday loans are available not only in the U.S.A., but also in the U.K. and Australia as well as other parts of the world. Sometimes a payday loan means the difference between having what you need when you can’t stretch your budget any further, or going without.
Many people find payday loans quite helpful, but they may not realize all of the facts about them. That’s why we created the article, so you can learn just a bit more about these loans. We’ve found payday loans perfect whenever you’re in a stretch to get to that next paycheck.
Here are 10 informative facts about payday loans!
1. A payday loan is also known by other names. It’s also called a “short term loan” or a “cash advance loan.”
2. Do you understand how long a payday loan is in effect for? Now this can depend a bit on exactly where you obtained your payday loan. But the most popular terms are for 14 days, which gives you enough time to get to the next paycheck. That is if you are payed biweekly or bimonthly.
3. What do payday loan companies do to qualify you for a loan? The #1 and usually the only thing they do is to verify that you are employed. If you have a job, then you can get the payday loan that you desire. Yes, it really is that simple to get the payday loan you need. This is a great convenience for many individuals and families trying to make ends meet.
4. Payday loan companies do not verify income. So while they do double check to see if you have a job, no one asks exactly how much money you make. This means you have minimal limits on this micro loan as to the amount that you request to borrow. Because the terms are far less strict than if you went to the bank or another type of lender.
5. One thing that is quite helpful to know is that you can get as many payday loans as you need during the year. There is no limit on the number of payday loans that you obtain. Simply that you pay them back in a timely manner. But you can borrow as much and as often as you would like to. That’s exactly why payday loans are there for.
6. When you go to get a payday loan, they do not run a credit check or look at your credit score. For some, having a credit score check can feel quite stressful. If you just got a divorce and your spouse was the spender in the relationship then you know your credit score is not very good. It’s terrific that you can get a payday loan without worrying about your credit score.
7. When you go to get one, they don’t ask what you need the loan for. Now this is quite helpful and actually rather different from when you get a loan from the bank. Because the bank is going to ask many questions and judge exactly what you need the money for and if it has value. But your payday loan company will not do that.
8. Most often the payday loan is due when your next paycheck comes in. While the “official” term of a payday loan is 14 days, when you sign up to get a payday loan they are going to ask when you get paid. Because that day is when your payday loan is due. They know you will have the money to pay them back right then on that exact day.
9. You don’t need a bank account to get a payday loan. Not everyone needs or wants a bank account. But it is basically impossible to get a loan at the bank without a bank account! Fortunately you can get a payday loan without one.
10. People just like you get payday loans. Moms, teachers, nurses, store managers, entrepreneurs, accountants, truck drivers and many more people get payday loans all the time. There are plenty of circumstances where you want and need that helpful payday loan.