Payday Loans
Payday loans have become an easy way to get out of a jam. They don’t need a credit check and you need to only provide a small amount of documentation. They are easy for most people to get, and you can find a lender on almost every corner. There are other things that you should know about these loans.
The good thing about these loans is that anyone can get one and that it can be used for anything. There is nothing saying what you need to spend the money on. You could use it for an emergency that has come up or you could use it to splurge at the mall. You will just be required to pay it back at a later time, usually on your next payday.
There are many places to get these loans, making it even easier to get them. One place that you could try is https://www.forbrukslån.no/smålån/who has all types of loans that you could check out. They have a variety of products that you could look at.
This article will give you some information about payday loans. It will give you information that you should know before you take one out. You should be careful doing so because it can lead to trouble. You can do more research on this to get more information.
Information About Payday Loans
- Gives You an Option – Payday loans give you an option when you are out of other options. If you can’t borrow money anywhere else, chances are that you will be able to get one of these. Your credit is usually not checked, and you are only asked for a little bit of information.
The information that you may have to give is limited to your government identification information, proof of income, bank statements, and other information that shows that you can pay the money back. After looking at the information, you are almost always approved to borrow money – usually up to fifteen hundred dollars depending on the state that you live in. You will be required to pay it back in full on your next payday.
- No Credit Check – As was mentioned above, there is no credit check needed. This does not affect your credit history at all – it doesn’t raise your scores and doesn’t damage it. Even if you fail to pay it back, your credit history will not be affected.
If you can provide the information above, you will be approved. The only reason that you might not be able to borrow the money would be if you were underage, or you didn’t have a job. Otherwise, you will be approved.
- Tax Returns – Along with the other things that you do have to provide, you might also need to provide a copy of your tax returns. This is just in case the lender needs more information about your pay. This is not usual, but you should have it with you just in case. You need to be prepared if you want to take money home.
If you haven’t been at a job long enough to provide a tax return, there may still be hope for you. You can talk to the lender and let them know about your situation. Some lenders will accept your pay stubs as proof of your income.
- They Are Easy to Get – There are no hoops to jump through to get one of these loans. They are easy to get and there are not many reasons for the lender to turn you down. Unless you are underage or don’t have a job, you are likely to get the money you are asking for. You can usually you can get it in less than an hour.
You should be able to get this money if you are over eighteen and have had a good job for a while. You should have been employed for at least six months before you tried. You should also have a bank account to show that you can pay the money back.
- They Cost More than Other Loans – You will pay much more for one of these loans than you will for others. The interest rate is usually up around four hundred percent. That means on a five-hundred-dollar loan, you will pay an extra seventy-five dollars. You will need to pay this on your next payday, as well.
There are often additional fees that you will need to pay with these, as well. You may need to pay origination fees, along with other fees that the lender may ask for. These are good for those people who this might be a last option for.
- You Can Extend Them – Sometimes you will be able to extend the loan if you don’t have the money on your next payday. Some lenders will allow this to happen, but you will have to be approved again. Others will just allow you to extend it without any further paperwork.
Other lenders will tell you that you need to pay the loan off first, but then you can rewrite it. You will need to pay it off in full, but the lender will approve you for a new loan. You will lose out on your interest money because you will not get that back when you rewrite.
- You Can Only Borrow So Much – You can only borrow as much as you can pay back. Some states also limit the amount that you can borrow. In some states, this is as little as five hundred dollars. Other states allow you up to two thousand dollars.
Your income also determines how much you can borrow. Even if your state will allow you up to two thousand dollars, your income must also match what you want to borrow. If the lender doesn’t think you will be able to pay it back, they won’t give you the money.
- You Can Use the Money However You Want – There are no rules that tell you how you must spend the money. You can use it however you want, but you should be careful how you use it. You are paying a lot of interest and fees for it.
You should use it for emergencies only because you don’t want to borrow for frivolous items. You can always wait for those types of things until you have the money. You don’t need to have them at any time, so you can wait.
- There are Interest Rate Caps – Lenders used to be able to charge as much interest as they wanted. There are now laws that limit the amount that they can charge. Learn more about that here. The interest rates are still much higher than other loans, but they are lower than they were before these limits were put in place.
These laws also limit other fees that can be charged. If you think that you have been overcharged – either interest or other fees – you should investigate the legislation for your state. You may be issued a refund if you find out that you are right.
- Helps You When You Are in a Bind – The best thing about payday loans is that they can help you when no one else will. You can usually count on them when you can’t count on others. Traditional lenders will ask you for more than payday lenders will and will look at credit history and credit scores. Payday lenders don’t look at those.
Conclusion
Payday loans are great for people who are in a bind. They don’t require good credit history or credit scores. They do have higher interest rates than traditional loans, but those are limited by legislation. You may also need to pay other fees such as application fees or origination fees.
This is a good way to borrow if you have no other options – especially if you are a first-time borrower. You need to be careful about taking these types out because you can get caught up in a trap that you can’t get out of. You want to make sure that you can pay the money back in full on your next payday.