If you’ve read the title of this article, then you know that I’m a fan of a payday loan. The short answer is, yes I am.
There are two very good reasons for this. One, the loan itself is secure. The loan is backed by a lot of paperwork and documentation. Two, it will get you fast cash. The loan is a very short term, typically five to sixty days.
Now, I know what you’re thinking, you’re wondering how anyone can say anything about the whole situation? My response would be this: when you’ve had problems with loans before, you naturally want to do things the right way again.
What do I need to be approved for a loan?
It doesn’t matter how safe a loan is, if you’re being burned in the end, your mind is probably set on some other route. If you’re going to try a new method, you need to make sure that you’re going to get what you want out of it.
Let’s look at how the payday loan system works. You go to one of the approved companies to apply for the loan. They will request basic information from you, including a bank account and an income.
The loan company looks at your finances and determines your monthly and annual income. Based on this information, they will compare it to their database to find the best lender for you.
Is credit score important?
If you have bad credit, then it’s going to be even harder to get your loan approved. The reason is, they won’t want to take the chance. Since you are a risky customer, they aren’t inclined to take a chance.
If you do have good credit, though, you may still have problems getting your loan approved. Since there is no paperwork or paper work involved, lenders like to have something in writing before approving your loan.
That’s why you need to use an approved lender, just as if you were using a traditional loan. They will have the letter ready for you to sign.
What are the loan terms available?
When you do get approved, it’s easy to use the loan. Once you have the money, you can pay the loan off in as little as a month or as long as six months. Plus, the money will be used to help pay for some bills or emergencies.
One last word of advice. Don’t make the mistake of buying your payday loan consolidation with an unapproved company. Make sure you’re getting approved for the loan.