What Are Payday Loans?
Payday loans are offered to individuals and families who often have very bad credit and cannot obtain traditional financing because their credit is so bad. Most people who have bad credit and need an immediate loan will go this route because many people have no other options. It’s difficult to find a loan when you have bad credit. The maximum amount of money you can receive depends on many factors, but usually they will not loan you more than $1,500, although we have seen some loan companies offer out as much as $2,500. If you need money right away, and only need up to $2,500 then we highly recommend a payday loan that has good repayment terms. Many companies require you to pay the loan back on your next paycheck, so make sure that you find a company that will give you ample time to pay it back. You’ll want to pay it back as soon as possible anyway because you don’t want the interest to keep accumulating. The interest alone in some cases can be well over 750% APR. In order to qualify for a loan, you’ll need to provide proof of employment and preferably have been at your job for a good amount of time, you’ll need a checking account, and a SSN if you live in the United States. Depending on your requested loan amount, you may need to provide even more identification and documents.
So How Do You Pick A Great Payday Loan Provider?
Well, the first thing you want to do is ensure that the pay day loan provider is giving you the best APR. The APR is the Annual Percentage Rate for the interest. Make sure it’s low and reasonable. You never want to pay more interest than you should. Although in these situations when you have bad credit, it’s harder to negotiate. You’ll also want to find a lender that will allow you ample time to pay the loan back. There are lenders who will allow you to pay the loan back within 100 days. These are 2 of the most important things to look for.