Fast Payday Loans Online - Do You Really Need It?
Everyone could face problems that require extra funds to address. Fortunately, nowadays there are lots of possibilities to get financial assistance quickly and inexpensively. Payday loans could become a flotation ring for everyone who is forced to cope with emergencies or unexpected bills. Let’s learn more about fast payday loans.
Payday Loan - What is It?
A payday loan is a short-term financial assistance, a person who takes it can pay back from his next paycheck. You can get up to $1000, but you should remember that this loan implies a high-interest rate. Taking a payday loan you must provide the lender the right to manage your checking account in some way. Otherwise, you have to deliver a check for the entire balance amount beforehand. Such an approach is needed to allow the lender to recover the loan on the maturity day. You can get the desired amount of funds in the form of cash, check or receive it via transfer. There is also a possibility to get the loan on a pre-paid debit card. This form of financial assistance, as a rule, should be returned in one lump sum payment. However, everything depends on the circumstances, so rollovers and renewals are common. You also should know that the loan could be repayable in installment after a little while.
How Popular Is The Payday Loan Industry In The USA?
The size of the payday loan sector in the United States is estimated to be more than $45 billion. The results from the research organized by The Pew Charitable Trusts shows that every year more than 10 million residents in the USA have to take fast payday loans. It should be noted that around 5% of US residents have got this financial assistance during the last 5 years.
Almost 3/4th of adults who borrow funds prefer storefront lenders, and just 1/4th of residents choose the variant to get money online. According to data from state regulatory authorities, residents can get up to 8 fast loans per year. Borrowers have to spend more than $500 on interest and the average size of a loan is about $370. There are groups of people in the USA who are more likely to ask for this type of financial aid:
- a. those who rent apartments;
- b. Americans who don’t have a 4-year college degree;
- c. residents who are divorced or separated;
- d. African Americans;
- e. people with a salary less than $40,000 per year.
It’s not a secret that people are forced to take loans to deal with common living expenses. Thus, if you are disturbed with the question “Are there payday loans near me?” then let’s learn more about all details concerning this fast type of financial assistance.
There are States Where Payday Loans are Prohibited
More and more American states have introduced new laws due to which certain restrictions should be implemented in the payday industry. For now, there is just one state where payday loans are definitely prohibited. This is Georgia. At the same time, other states enforced caps on short-term and small-sized loans ranging from 17% to 30% in 2014. The lender of these loans can charge huge annual interest rates in 32 American states.
How to Get a Payday Loan Online in the USA?
Of course, the requirements could vary depending on the state. However, there are some basic rules all applicants should meet. Some of the main requirements are the following:
- An applicant must be more than 18 years old;
- A borrower must have access to the checking account and it should be opened no less than 1 month before applying for this type of fast financial assistance;
- A resident should have a regular source of income and he should be able to verify it;
- The necessary requirement for a payday loan is an actual Social Security number;
- A borrower must have a driver’s license or be ready to provide a photo ID;
- Those who want to get a loan should have a valid phone number to keep a connection with a lender;
- A borrower must be a status of a resident of the state in which he is going to apply (for those who apply online this requirement is also applicable);
- Payday loans are not supposed for debtors in a case of bankruptcy;
Things You Should Know Before Applying For Payday Loans Online
Does it make sense to ask for this type of loan? This article will help you to make the right decision to decide. You should understand that in some cases these loans can be somewhat costly, especially when applying for them several times per year. The situation may be exacerbated by several risks, for instance, this loan may not be a great variant for those people who can’t return the money on time. You are advised to take short-term loans like this one only when you have urgent requirements and there is no possibility to get funds from other sources or people (family members, colleagues, friends, financial institutions). If your financial position is poor you must think well about whether you are ready to take another loan or not. If you can pay back on time using funds from your monthly budget, then you are welcome to think about this variant of financial assistance.
The Advantages of Payday Loans Online
There could be different situations in your life and you must look for different variants to cope with problems. If you are ready to get a payday loan but still have some doubts let’s look at all benefits this loan offers:
- 1. Online payday loans are very accessible. You can ask for help at any moment of the day, as some lenders are available round the clock. Unlike classic loans, which can take time to receive, the applications for fast loans can be approved in 10 minutes.
- 2. These loans have fewer requirements. Thus, you can be sure that you will definitely get money if all requirements are met.
- 3. The lender doesn’t check credit history. Unlike classic loans where a borrower has to have an excellent credit history to get funds, payday loans don’t require it.
- 4. It’s an unsecured loan. These loans are not secured by personal possessions. Thus, your lender has no right to seize your property as a consequence if you don’t pay back the money.
Moreover, you can get a payday loan online whenever you are. You don’t need to spend time waiting in line, a payday loan requires just some documents and about 15 minutes. Whatever it is, think twice before applying to any loans.