When you think of loans, you might think they are nothing but a hassle and a waste of time. Sometimes we fail to see that they are one of the most useful tools when it comes to financial aid in the U.S. Loans have provided a much-needed safety net for millions of Americans over the past decade.
A payday loan, more specifically, is short-term money borrowing, which can allow someone to take care of surprise expenses and lower-cost investments. Getting accepted for this type of loan is easy because it is a small lump sum of cash. However, these loans are not for everyone, and can damage the ill-informed.
Payday loans were first established by William Allan Jones Jr., who founded and built the first major payday loan chain. These loans, also known as “cash advance loans,” are a powerful tool for an individual borrower who is running late on rent, needs to cover the cost of car repair, or purchase books for their university courses. A loan can save a big headache in the long run. Getting on the right track to focus on the future has never been easier.
Since these loans are only for a small amount ranging from around $100 to $1,000, getting approved is easy. Requirements include an active bank account, a credit union account, or a prepaid card along with verification of income and a valid United States ID showing that you are at least 18 years old. Some branches may require the applicant to be employed at their job for at least one year before being approved. Some branches may check for a credit history.
Because loans directly influence a person’s credit score, it may not be an option best suited for everyone. Practice being informed. Loans can sometimes have higher interest rates that can vary from place to place and how much money you are looking to borrow. An individual’s credit score can and will be affected by late payments, and will either go up or down over time depending on your punctuality in making payments. Late fees can occur depending on who you go to, so it is best to check with the moneylender before applying.
Payday loans can be a useful tool used to save time that you do not have to waste. Whether it be for emergency funds or life-time investments, this is a high-speed alternative to a diminished savings account. In as little time as it takes to get a paycheck, you could have a loan to help you get back on track in no time.