Payday Loans – Answering the Most Frequently Asked Questions

| September 28, 2012
Payday Loans Questions

Payday Loans Questions

Payday loans are the most viable option for getting cash in hand in case of some emergency. Life is unpredictable and there are instances when the need of money is so immediate that one feels at a loss as to what should be done. It is in such scenarios that payday loans jump into the picture. Believed to be the fastest and most convenient means to cover any unpredicted expenditures, they are ideal for those who wish to avoid the fuss of credit ratings.

While there are many options like online payday loans from Dosh Express, before going ahead and securing one, it is imperative to take several important aspects into consideration that come into play. The following is endeavored at providing answers to the most frequently asked questions to individuals who are evaluating if getting a payday loan will prove to be a smart move or not.

  • What actually is a payday loan?

Also known as pay check loans, cash advance and check loans, a payday loan is actually an unsecured loan that is used to meet any urgent financial need. These loans have the shortest tenure among all the type of loans that are available in the market and are paid through a deduction on your next payday from your pay check.

  • Do these loans come with any restrictions or limitations?

With the payday being days away, there are times when one is in dire need of money but feels helpless. These immediate needs could be anything from medical bills, any urgent repairs, kid’s school fees or any other sort of financial obligation. It can be used for any purpose whatsoever, so there is no restriction as to how you should spend the amount from a payday loan.

  • Am I eligible to get a payday loan?

The best aspect associated with payday loans is that it has no prerequisites such as a good credit rating. Even those with a bad credit score can get it. Also, payday loans do not affect your credit rating one way or the other. The only requirement is that you hold a regular job and a running account.

  • What is the method of application?

It is easier than one can imagine. Payday loans can be applied for online. The company may ask for basic information such as employer details, your name, address or your bank statement. You may be asked to provide certain documents which are minimal as compared to other type of loans.

  • Is any fee charged?

Yes, a small amount is asked by companies providing payday loans in the name of fees. That is why it is recommended that you evaluate your options before settling for one. However, there are companies that provide payday loans without charging any fees if you are getting it for the first time.

  • How much can I get as a payday loan?

Depending upon the borrower’s repaying capacity and need, it is possible to get any amount between $100 to $1000.

  • What is the tenure of a payday loan?

Since the payday loan is supposed to be paid back on the next pay check, the maximum duration to repay the loan is 30 days. However, there are companies that are flexible in this regard and allow you to extend the duration. Still, one should not forget that this extension comes at a price.

  • How many days does it take to secure a payday loan?

Payday loans are less time consuming and much easier to acquire as compared to other type of loans. You just apply online and you will get a phone call from the lender’s representative. Once the formalities are complete, the requested amount will be transferred to your account right away.

With this information, hopefully you will find answers to all your queries related to payday loans.

 

Payday Loans – Answering the Most Frequently Asked Questions

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