While payday loans may not be the right option for everyone, there are many circumstances in which they can be very helpful. If a family member is in a car crash and needs immediate surgery and plenty of medical care afterwards, a payday loan can provide the money almost as soon as it was needed. This can also apply to any kind of emergency that needs instant funds. If your bank won’t advance you a loan, your friends and family simple can’t help out at the moment, and you have no liquefiable possessions, payday loans are definitely be the way to go. In this article, we will look at four things to know about payday loans.
1. PAYDAY LOANS DO NOT REQUIRE A SECURITY DEPOSIT OR COLLATERAL
When you need money to cover an emergency, the last thing you want to think about is figuring out what kind of collateral you have that could work for the loan you need. Sometimes, you won’t even have collateral at that moment which makes procuring a loan even harder. But with payday loans you won’t have worry about putting down a security deposit or putting up collateral. You will be required to provide documents showing that you will be in a position to repay the loan, but that is much easier than providing collateral.
2. INTEREST RATES ARE HIGH
Many banks provide a low interest rate for loans, but when you take out a payday loan the interest is usually quite high. That isn’t so much of a problem when you need quick cash and are able to pay the loan back swiftly, but it is still important to go over all your options. Payday loans are a convenient way to raise a lot of money in a little time when there is an emergency – just be prepared for the higher interest rates.
3. YOUR MONEY CAN BE THERE IN THE NEXT HOUR OR TWO
Again, this is vitally important in case of a financial or physical emergency. If you are currently employed and have a bank account, you can be approved for a payday loan in less than three hours. Credit checks are rare, though they will occasionally come up depending on who’s paying out the loan. And once you’re approved, the money can be placed in your online bank account almost instantly, making payday loans the quickest loan option out there. You can learn more at the Speedy Cash website.
4. BEWARE OF SCAMS
Though there are plenty of payday loan lenders who are genuine and will help you find the best loan possible, there are also plenty of scams. Needless to say, it is extremely important not to fall for any of these scams and there are measures you can take to make sure that doesn’t happen. Talk to friends, family members, or coworkers who have been successfully given a payday loan. Research online and find out if the lender you’re looking at is registered. And if a lender asks you to transfer money to them so they can ‘process your loan’, run the other way!