When you find yourself in need of cash now but your salary is not coming until the end of the month, turning to easy payday loan providers is a practical and convenient solution. Whether it’s to pay a utility bill, groceries, tuition, or other personal purchase, knowing that you have a potential source of funds when the wallet is near-empty is comforting.
Payday loans are particularly popular during emergency situations, especially as majority of the country’s working class have little to zero savings in the bank. This is why despite being criticized heavily, it remains a thriving industry that has saved many people from further financial distress. In addition, most of these short-term loans are approved even without checking the applicant’s credit history. They also can be processed online, sans a personal appearance at a brick-and-mortar office.
Common Uses of Payday Loans
Most people who take out payday loans use it to cover usual living expenses. While there are some who do apply for these to fund unexpected emergencies, majority use it to pay for recurring costs, such as rent, utilities, mortgages, and credit card bills. Some also use it for groceries and tuition. Those who apply for payday loans for unexpected events usually do so when there’s a medical emergency, when their car breaks down, or a part of the house needs to be urgently repaired.
Loans are easy to get if you have a payday coming up. The requirements for online loan providers are similar, with the most basic ones including a valid U.S. ID to prove your citizenship, an active checking account where the money will be deposited and where your payments will be deducted, and a proof of income to prove that you have the capacity to meet your repayments. They will not require you to present a collateral, thus making it easy for the regular working class American to acquire.
Note that your credit score will generally have no bearing on your payday loan application and approvals are based mostly on your regular income. This is why it’s called a payday loan. The amount is usually less than $1000 and creditors will compute the loanable amount depending on your regular salary. The entire application process is conducted online and takes only 30 minutes to 1 hour. In most cases, loans are approved in the same time frame and the cash is instantly wired to your account within 24 hours.