A payday loan is a short-term, non-cash loan of money from a non-bank lending institution. To get such a loan of money, you need to make an application, which can be done using the Internet or by sending a text message application. A payday loan is often referred to as an internet or online loan, or a quick financial aid in the form of a microloan of money, because of its functions. Fast loans are designed to solve unexpected and urgent situations, not long-term financial problems. The amounts of payday loans can range from 1 USD to 10,000 USD. This amount depends on the conditions of each lender, the borrower’s credit history and creditworthiness situation. The first loan usually sets the maximum loan amount, the next loans also have a maximum amount, which especially honest and reliable clients can increase each time. Payday loans usually have a repayment period of 30 days, but this period can be increased for a fee.
Why do we choose payday loans?
In order to make an application for a loan, you do not even need to leave home, you can fill out an online application or send an SMS. So you save time not only on the road to get to the nearest branch of the lender, but also on the registration of many and different documents, which will fall away if you take a quick loan. The loan is transferred to the bank account within 20 minutes from the time of the application, so it is so well suited to solve urgent situations. The loan can be used as you want, whatever the purpose, you do not have to answer to the lender for it, but it should not be forgotten that it is not intended for such purposes as, solving long-term financial problems. As long as the registration and application takes place virtually, with no additional documentation, then no one pays special attention to the credit history and creditworthiness of the potential client. This makes it possible to get a loan even for such persons who have a poor credit history and low ability to pay.
The division of payday loans
Lenders, the non-bank lending sector, are mostly involved in short-term lending, but more and more lenders are getting involved in long-term loans. They offer mortgage loans, consumer loans and leasing. Short-term loans are known to have a repayment period of less than one year, and long-term loans have a repayment period of more than one year. A car loan is a short-term loan where the collateral is a car. In the case of a car loan, the owner of the car becomes the lender. The borrower receives a loan of up to 90 percent of the value of the car, makes the loan payments, and continues to drive the car. SMS loan is a short-term loan, for which you need to send an application by SMS to the phone number indicated by the lender. In order to be able to apply for an SMS loan option, you must first register on the lender’s website. An interest-free or free loan is a short-term loan for which no interest applies, which means that the borrower pays back as much as he originally borrowed. But an interest-free loan is used as a marketing tool to attract new customers because it applies only to new customers and only for the first time borrowed. A No-Employment Loan is a short-term loan, which is given to people who have no official place of work and no salary. If all the regulations are taken into account, fewer and fewer lenders are offering such a loan. They ask the client to prove online that they have an official job and salary. A loan from 18 years old is a short-term loan that is given to individuals from the age of 18. But, given all the regulations and the bitter experience of lending, such a loan is offered very rarely. The minimum age of customers is at least 20 or even 21 years old.
What should you pay attention to when choosing a lender?
Loan amount – make sure that the maximum loan amount includes the amount you need. Repayment terms – quick loans are usually 30 days, but sometimes they can be 45 days or even 12 months. Annual Percentage Rate – The annual percentage rate for quick loans is quite high. But you need to keep in mind that these are short-term loans that pay off in no more than one year, so it’s not very nice to compare the annual interest rate for short-term and long-term loans. SMS loan application – most lenders offer an SMS loan option, this is the ability to make a loan application by SMS only. Age – note whether your age matches the age that the lender has listed as the minimum age of a potential customer. Working hours – you can apply for a loan at any time, but you can get it from 07:00 to 23:00. The first loan as an interest-free loan is a favorable option to take a loan and pay absolutely nothing. Member of the U.S Association of Non-Banking Lending – if a lender is a member of this association, then he is more reliable, because they care about the interests of borrowers and practice fair commercial lending practices. Recognizability – this factor is difficult to assess, but as experience shows, the more recognizable, the more reliable lender.
Conditions for getting a fast loan
Of course, each lender establishes the criteria for granting a loan individually, but there are lines that most lenders are similar: * You must be a citizen or a resident of the USA; * You must be at least 18 years old; * You must have a registered active bank account in one of the U.S commercial banks and in the case of SMS credit – a cell phone with a valid number; * The bank account must have funds of at least one euro cent, it will serve as a registration fee; * There must be a positive credit history and creditworthiness.