The entire idea behind securing payday loans is to avail fast cash without hassles, in a bid to address your immediate financial need. A borrower can seek the aid of short term financing even with poor credit history though he will have to meet certain standard requirements. As a potential borrower of the payday loan, make sure that you are applying for it when you are at least 18 years of age or above. Additionally you need to have a savings or checking account and a regular source of income.
The money is generally borrowed for meeting very urgent needs like paying off a medical bill, meeting car repair expenses or else submitting a college fee. There might be times when you find yourself seriously short of cash and in need of tiding over a sudden economic crisis. The payday is still two or three other weeks away and you don’t have any other financial resource to turn to. A situation like this might be apt for applying for a payday loan. However, knowing about its features in detail will remain crucial.
Features of Short Term Financing
- As against traditional loans, the short-term loans are approved fast, and once approved the money is deposited in to the borrower’s account in less than 24 hours (in general).
- The reason why they are sanctioned so fast is that there are no credit checks involved. Borrowers with poor credit history or no credit at all can also secure them, if they meet the requirements, mentioned above.
- The APR associated with short term financing can be very high crossing 400 per cent as well.
How They Work
Once you are approved of the loan, you can write a check mentioning the amount that needs to be repaid that includes total loan principal, additional fees and the rates of interest involved. A lender will hold the check until you pay the loan back on your next pay day with the means of cash. However, if you think that you will not be able to repay your debt on time you should inform your creditor about the same by calling him up. In that case you will be given a chance to opt for a rollover. But remember that a loan extension will result in rates of interest shooting up thereby making expenses trigger out of control very soon. In order to make a good impression and make sure that you are successful in avoiding an inevitable debt trap, you should adopt every possible measure to step up your savings and use them to repay your no credit check payday loans on time.
Adhere to abstinence; try to work towards generating an extra source of earning, so as to ensure ample funds for repaying the debt. It would be even better if you are consulting multiple alternatives before resorting to short term financing. Questions that you should ask yourself before availing short term financing are listed below:
Is the need at hand too important?
Can you wait until your next payday?
Is there any chance, you can ask for help from your relatives or friends at very affordable rates?
Author Bio: Sam is a senior web content writer, who is specialized in writing about a range of topics including finance, health and food.