The Beginner’s Guide to Payday Loans (FAQs)
We’ve all faced cash shortage during some point or the other. This can be unnerving, especially during times of urgent need. The solution? Payday loans. These are cash advances you can get from moneylenders, which require no security or collateral – a quick option to sort out your financial needs.
Such loans are ideal for you if you’re in a tight spot and your pay day is not close enough yet. A bank loan comes with a long application procedure, whereas a payday loan provides quick funds without any hassles. What’s more, you don’t need to have a good credit score to be applicable for them. Consider them as a salary advancement which allows you to loan specific sums of money on your salary.
For us at Power Credit, the customer always comes first. We listen to your every need and are dedicated to helping you understand your choice of loan. Here is our beginner’s guide (list of frequently-asked questions) to payday loans:
- What are Payday Loans?
These are a form of credit that provide quick cash until your next payday. The lender sets the borrowing time period as well as the extensions.
- What’s the Difference between Payday Loans & other Loans?
Payday loans are a low-cost facility that can be easily obtained at a short notice. These are primarily designed for individuals who need cash immediately and cannot wait until they get their salary. Other loans can range from lower to higher amounts and are created for different purposes.
- Am I Eligible for Payday Loans?
If you are employed, above 21 years of age, and require some quick cash before the month ends, such loans are ideal for you.
- How much Money can I Borrow?
This depends on the loan consultant as well as your salary. After a check has been conducted on the information provided by you, a loan adviser should ideally approve an amount based on your gross income.
- Do I Require a Good Credit Score?
There’s no credit score needed for getting a payday loan. Loan consultants will determine your eligibility for one by checking and verifying whether you’re employed or not, and how much you earn.
- Does it Affect My Credit Rating?
Payday loans can have a positive effect on credit ratings. This is because each time you apply for one, the credit rating authorities are notified, and once you repay it, positive feedback is sent to them.
- How Long does it take to get a Payday Loan?
Unlike bank loans, payday cash advances can be obtained quickly and easily. The process of approval takes between a few minutes and a few hours.
- How can I Apply for One?
You can apply for a payday loan by simply submitting your details online. Once the loan is approved, the money will be deposited in your account.
- How do I know if my Lender is Reliable?
Make sure that you choose a licensed moneylender with reasonable interest rates. You can also read reviews and recommendations online. If you need more help selecting the right lender, check out this detailed 15-step infographic.
Remember that knowledge is power. Once you’ve read through all the payday loan FAQs, you can go ahead and confidently borrow the amount you need – without any worries whatsoever!