What options do you have to overcome a financial emergency if you have poor credit and no savings? You might think of asking friends or family members, but what if you need more money? A payday loan may come in handy since it's easy to get and doesn't require any sort of credit check. However, keep in mind that a payday loan is a quite expensive way to borrow; thus, you need to consider it as a last resort.
You are not recommended taking out a payday loan unless you are confident you can settle it in full, usually upon your next paycheck.
Payday Loans Described
Everyone knows that a payday loan is a short-term borrowing aimed to cover your immediate cash needs between paychecks. However, this is not the only information you need to know before considering a payday loan.
First of all, the payday loan repayment is typically due within two to four weeks, in other words, upon your next payday. This is a key feature of these loans as you don't have a long repayment schedule spread over several months. Second, payday lending offers only a single repayment date, which means you have to pay off your entire debt all at once.
If you are dealing with financial hardship and need instant cash, a payday loan may seem a good option. The amount you may qualify for ranges from $100 to $2500, depending on your state's laws.
An online application makes it easy to find a lender and receive the cash the very same day. No more in-store visits to brick and mortar banks or credit unions; apply online for small emergency loans with Shinyloans.
An Instant Decision
Online lenders we partner with may approve your credit request and provide much-needed cash quickly and securely. This means you don't have to wait for a long time to get a credit decision and cash in your hands accordingly. You may get a loan amount directly sent into your account to help you cover urgent expenses right away.
Guaranteed Approval. Is it True?
A guaranteed approval payday loan means that you will definitely get the amount you want, no matter how bad your financial state is. Don't believe in fairy tales.
Payday loans with guaranteed approval do not exist. The lender needs to manage the risk based on your financial capability to approve or deny your credit request.
Minimum Application Requirements
A payday loan can help you get quick cash to cover financial emergencies. If you decide to take out a payday loan, you typically need to meet the following criteria:
- Be at least 18 years of age,
- Be a US resident,
- Provide proof of income,
- Provide valid ID,
- Provide an onion and active bank account.
What if I Cannot Pay off a Payday Loan?
Defaulting a payday loan or being delinquent in payment may come with serious consequences:
Financial Rollover and Additional Fees: If you cannot set your loan on its maturity, you may roll your current loan into a new one. In simple terms, you pay to rechange the loan maturity date, but in fact, you end up trapped in a never-ending cycle that drains your budget.
Debt Collection: If you cannot pay your loan within the frame of 60 days, your lender may turn to a debt collection agency to recoup losses. You will likely come across a pretty aggressive effort to get you to pay up.
A Credit Score Downgrade: Paying off a payday loan will never affect your credit score. However, as soon as you default on your loan and your loan has been placed in a collection agency, you may expect a credit score downgrade. Information about a collection account will stay on your credit report for seven years.