We are all told that we have to budget. However, with the rising cost of living and wages being stagnant at best, budgeting is incredibly difficult. And if some sort of financial emergency then does happen, we are unprepared. This is where payday advance loans online can come in handy, however. Essentially, these are loans that you will pay back at your next payday, usually two or three weeks later. You can, if need be, roll the loan over to your next payday, but this is never recommended as the interest then starts to get very high.
Getting Started with Payday Advance Loans
There are various lenders that offer these types of loans. Take some time to search online for the various providers. Thanks to the internet, there is no longer any need to traipse from one bank to the other carrying mountains of paperwork. Now, you simply fill all your details in online and, if accepted, the money will be in your account the next business day.
Are You Eligible?
Payday loans are not available for everybody. However, unlike with other types of loans, they do not take your credit score into consideration. Additionally, they also don’t need any collateral, as the lender knows you will make the repayment straight out of your next paycheck. However, there are a few eligibility criteria. These include:
- You must be in full time employment and have held your job for at least three months (sometimes six).
- You must be a permanent and legal resident of this country.
- You must be at least 18 years old by law (21 for some lenders).
- You must have a current and valid bank account.
- You should meet the minimum earning requirements as set by the individual lenders.
Amounts and Interest Rates
If you have never applied for a payday loan before, you are likely to only be awarded a low amount of a few hundred dollars. However, if you have been to the lender before and you paid your loan back on time, then they are likely to lend you a little bit more. This also depends on how much you earn, however.
Repaying Your Loan
The loan will be repaid on your very next payday. When you accepted the loan, you will have agreed for the money to be taken straight out of your account on your actual payday and for this to take precedence over any other bills that come out of your account. The money you pay back is the loan principle itself (the amount you borrowed), as well as the interest for that month. If you need to roll the loan over for an additional month, you will only pay the interest. Then, at your next payday, you will pay the principle and the interest for that month. Do bear in mind that the interest rates on these loans are very high and that it is therefore never a good idea to roll the loan over.