Recent years have seen a great influx of payday lenders and advertisements. Be it through the radio, the television, or driving down the road you can’t miss the immense popularity of payday loans. While some may be very experienced in the payday loan process , others are unfamiliar with this nontraditional loan. Without all the information it is hard to decide if these loans are for you.
One of the largest groups of people that payday lenders advertise to is to those with poor credit. Having good credit is a big part of the traditional loan approval process. Often people with less than perfect credit have a hard time getting loans through banks and traditional lending sources. Most of the time payday lenders do not require a credit check and, as a result, those with less than perfect credit get approved.
Timeliness is a big factor when it comes to getting a loan. By going through a bank or credit union, you often have to wait weeks before the approval process is complete and the money is transferred into your account. That is not true of payday loans. One of the biggest selling points of payday loans is how quickly you can have the money. Most of the time the money is put into your account on the same day, sometimes even within a few hours. This is handy if you are in the middle of a financial crisis and need the money as soon as possible.
It is important, however, to remember that the money borrowed through a payday lender is short-term. This means that your loan will come due typically within two weeks or your next paycheck.
Before you take out a loan from anyone it is important to do your research and find a lender that you can trust. Without trust you will not be free from stress and you will be more likely to be taken advantage of.