The Benefits of Payday Loans
There you are, in between paydays, with a pressing bill hanging over your head.
A regular loan would be too much of a hassle, and you do not want to put anything on your credit cards.
Where can you get access to quick and convenient cash, without the need to do a credit check or complete a bunch of paperwork?
The possible answer to your financial dilemma is a payday loan.
Payday loans, also called payday cash advances, can offer financial support to individuals who are struggling with a temporary, short-term financial need.
Who is a Typical Payday Loan Customer
Some people might be hesitant to get a payday loan, thinking that going to a payday lender might reflect badly on them. However, the typical payday loan customer is not much different from your average consumer.
In fact, the average payday loan borrower looks a lot like an average working professional, according to a study by the McDonough School of Business at Georgetown University.
The study looked at various characteristics of payday loan borrowers in the United States.
When it came to the age of those who used payday loans, 68 percent were under the age of 45, while 4 percent were 65 years or older.
Education level also was examined - among payday loan customers, 94 percent had earned at least their high school diploma and 56 percent reported having at least some college education or an advanced degree.
Other findings from the study showed that 42 percent of payday loan customers owned their own homes, while 64 percent reported having children still living at home.
The Payday Loan Process
Unlike most loans, the payday loan process is fairly simple. You do not need to fill out a bunch of paperwork, and rarely will the payday lender check your credit score.
Typically, all you need to secure a payday loan is an active checking or savings account with the option of direct deposit.
Other standard requirements to get a payday loan include:
- Being at least 18 years of age;
- Being able to prove American citizenship; and
- Earning a regular income via employment or a government program, such as social security.
Payday loan borrowers can acquire a payday loan in two convenient ways: they can visit one of the many payday loan stores in their area or they can secure an online payday loan via the Internet.
If you decide to visit a payday loan store, you will need to provide the lender a check written out for the amount of your loan plus any finance charges. The lender then will hold on to that check until you repay the loan.
If you decide that an online payday loan is the way to go, you will need to provide your bank account information to via the lender's secure site. The payday loan funds then will be deposited directly into your account.
You typically will have 14 to 31 days to repay the payday loan. If you are unable to repay the loan by the due date, many payday lenders provide the option of extending the payday loan's repayment period. However, it is important to note that you will have to pay finance fees in order to extend the repayment period, and as such, you should try your hardest to repay the loan by the original due date.