If you find yourself in the same position many Americans are in every day – no cash! – maybe a payday loan is for you. Generally, cash payday loans are a legitimate way to receive cash and work by transferring money to your bank account within about a day if done by online application, or by giving you cash instantly if done in person. This money is then re-paid to the lender from your next paycheck! Basically, it is a loan that gives you the money you need now and is guaranteed by your next payday.
Typically the only requirement for receiving these types of loans are that you are over 18 years of age, have a bank account, a regular paycheck and pay your credit card bills regularly and on time. There is no collateral involved with a payday loan.
The most important thing for you to do as a borrower is to do your homework! Research a few direct online payday lenders and make sure the company you are applying for a loan with is a legitimate one. Be careful of the interest rate, as most payday loans are lent at a much higher than normal rate because of the loan’s short term. Also be careful, because if for some reason you do not pay the loan back with your next paycheck – you will then have a growing debt. There may also be legal repercussions for not paying back on time and you may actually be facing a court date – so make sure you know what you’re getting into before you sign on the dotted line!
One benefit that payday loans may provide some borrowers is actually an improvement in their personal credit score and credit history. Bad credit pay day lenders provide payday loans to borrowers with poor credit and paying them off in full, and on-time can actually improve your credit score by adding a positive mark on your credit history.