Home Insights & Advice Five things to remember before getting a payday loan

Five things to remember before getting a payday loan

by John Saunders
22nd Apr 19 1:45 pm

Payday loans come as a quick solution for those who need emergency money. For example, you might find that your roof is leaking during the rainy season and you do not have money to fix it. Payday loans come handy in getting you out of such potentialities. Unfortunately, many people do not use payday loans for the purposes that they are intended for and thus, get into a lot of problems. It is therefore important to master the things that you should put into consideration before going for personal money network payday loans. Below, we will look at those things. This is to help you make an informed decision in the process.

The lenders only require a bank account with a solid income

The conditions for getting a payday loan are simple. You just need to be in a solid job for a period of three months and above and have a checking account where your employer deposits your salary. Most lenders, however, can advance loans that amount to about 80% of one’s salary. But if you are in private business, you can still get the loan provided that you produce evidence of a steady source of income. There are other lenders who can advance loans to people receiving alimony payments.

You can do the applications online

Most payday loan companies offer loan services online where applicants can fill out forms online before they are advanced with the loan.  Many companies avail the loans within 2 business days after the application has been approved. Online payday loan applications can provide you with a lot of conveniences especially since you are carrying out the process from the comfort of your home or office. This is important for it can save you both time and efforts when trying to get the loan. Therefore, if you want convenience and fast service, you should consider going for lenders that offer their services online.

Your credit history does not matter

When looking for a payday loan, it is important to realize that the application does not depend on your credit history. This is unlike in other loans from financial institutions that put a lot of emphasis on the applicant’s credit history. Therefore, with a payday loan, you do not have to worry about your creating a clean credit reputation before you can go for payday loans.  

Get a loan that is equal to your problem

One of the mistakes that people make when getting payday loans is asking for more money than they need. You need to realize that a payday loan is just like any other formal loan and therefore, comes with an interest. Therefore, you should minimize the amount of the loan for as much as possible so as to protect reduce the interest payable. When applying for the loan, you should first do an estimate of the amount of money that you need to cover the current problem so that you can avoid paying hefty amounts of interests.

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