Everyone has times when they need money quickly. Your paycheck may not be due for a while, but you have bills that need to paid. A low fee payday loan can help you out of a short term financial jam. This type of loan has a lower fee then an ordinary payday loan. Some lending agencies for a low fee payday loan will perform a credit check before they lend you money.
What Are The Eligibility Criteria?
It is quite easy to qualify and most lenders have the same basic criteria, which include:
- Applicant should be at least 18 years old.
- Borrower must have a job and minimum monthly income of $1000
- Applicant must possess a working bank account.
- Some lenders will have additional requirements
What Is the Process Like?
The process is typically quick and hassle-free.
- Complete an application online. You should make sure to accurately complete the information, if you want the approval process to be quick.
- After you have been approved, a representative from the lending agency will contact you. You may be asked to supply more details to support your credentials. For example, your identification or employment.
- Your instant payday loan funds will be transferred to your bank account.
- On the agreed upon repayment date, the money you borrowed plus associated fees will be automatically withdrawn from your checking account.
Know the Risks
An instant payday loan is an unsecured short term loans that can help you out of a temporary time of financial difficulty. Because of this, these loans have more interest than traditional loans. Higher interest means that you should make every effort to repay the loan completely as soon as possible. Other potential risks are:
- You could begin a cycle of debt, where you constantly owe money. This will result in jeopardizing your financial future.
- You could be dealing with a bad lender. You need money so desperately that you do not carefully evaluate the company. Be sure to stick with federally regulated firms.
- Failure to repay your loan can make your financial situation worse. Bounced checks can result in hefty penalties from your bank and damage to your credit score.
If you act responsibly, you can decrease or completely eliminate these risks associated with a low fee payday loan. Take notice of the little details and make sure you are clear on all terms before you sign anything.