A Payday Loan Guide: Are There Different Types of Payday Loans?
Do you need cash to help tide you over from one paycheck to the next?
If you’re among close to 80% of people that live paycheck to paycheck, you may have thought about applying for a payday loan.
But what is a payday loan, and what are some of the most popular forms of payday lending?
Keep on reading this post to find out.
What Is a Payday Loan?
First, let’s quickly define a payday loan. These are small personal loans, usually in amounts under $1,000, that you can apply for when you need to cover expenses in between paychecks.
They offer a simpler and faster approval process than other types of loans. They are short-term loans, which means they carry a higher interest rate than other loans. Check with individual lenders to determine the specific qualifications and application requirements you must meet.
Avoid borrowing more than you truly need to tide you over until your next paycheck, and be certain that you can pay back the loan in full according to the terms.
Now, let’s talk about the different types of payday loans you may choose to apply for.
An Online Payday Loan
The majority of payday lending takes place online.
If you have bad credit, don’t worry — you’ll likely still be able to be approved for an online payday loan.
Interestingly, online loans for those with bad credit often have lower fees than other types of payday loans. So, if a low interest rate is your priority, you should look into online payday loans for sure.
This is a great way to quickly rebuild your credit score, as well. Just make sure you can pay the loan back according to the terms you and the lender have agreed upon.
Instant Payday Loans
In some cases, you may find that you’re not in a situation to wait for your money.
Whether you were hit with an emergency expense, need to pay for medications, or just need to keep the lights on, you need a payday loan now.
Luckily, you can get an instant, or same day, payday loan.
You’ll need to provide a government issued identification card, a proof of employment, and potentially a few months’ worth of bank statements. The good news is that most same day payday lenders don’t perform a credit check.
This is what helps you to be able to get your money so quickly.
Interested in Getting a Payday Loan?
We hope that this post has helped you to better understand what a payday loan is, and the different kinds available to you.
Perhaps you’ve realized that a payday loan doesn’t fit with your current financial needs, and want to learn about additional lending options.
Whether you want to compare loan types, get tips on which credit cards are right for you, or just want to understand how to strengthen your credit score, we’re here to help.
Keep checking back with us to understand the loan application process and to work towards improving your financial standing.