None of us plan on running out of money before payday comes around, but it certainly happens. Whether we have an expensive emergency, such as a water heater breaking down, or we miscalculate how much we need to pay the bills, at some point or another, you might need a little help.
One of the best and easiest ways to get the money you need when things get tight is an instant payday loan. Instant payday loans can cover your expenses between paydays, and they can help to give you peace of mind when unexpected costs creep up.
What Exactly are Payday Loans?
A payday loan is a short-term loan that is based on your personal income. Basically, you get the money you are owed at payday, instantly, instead of having to wait. In exchange for that, lenders charge a fee in the form of an interest charge.
Some payday loans must be paid back with the next paycheck. Other payday loans are installment loans, which means you can pay them over time. In this case, the lender takes payments directly from the borrower’s bank account, usually on payday.
How do Instant Payday Loans Work?
Most payday loans range from as little as $100 to more than $1,000, depending on the state where the loan is given. Most loans have terms that last about two weeks. There is a high APR for most of these loans, and a finance charge is also often added. Typically, the shorter the terms of the loan, the higher the interest rate.
With all of these fees, you might wonder if it’s worth it to look into instant payday loans. Well, it depends on your situation. You might find that the fees for the loan are cheaper than the late fees for a bill. You also should consider that a late payment on a bill could negatively affect your credit. Alternatively, when you pay back a payday loan on time, it could help to improve your credit.
You can also think of instant payday loans as cash advances. These loans are secured by a check or access you your bank account. To fully understand it, consider this scenario:
Imagine that you need to borrow $100. With the lenders that Bonsai Finance can connect you with, there is a fee to borrow the money. Let’s say that fee is $15. So, to borrow the money, you have to write a check to the lender for $115. The lender then holds this check until the next payday, and then it is cashed. Alternatively, you can give the company the ability to take a wire transfer from your bank account for the $115.
When it’s time to collect the $115, you can choose to allow the lender to take the money, or you can pay another $15 to roll over the loan for another two weeks.
The Requirements to Request a Payday Loan
You might be surprised by how easy it is to request a payday loan. Instant payday loans are all done online, which is a convenient and fast process. You do require an open bank account to get one of these loans, and you do have to have a steady source of income coming in. You also have to have a valid ID.
One of the things that people like about instant payday loans is that they do not require a credit check. Lenders also do not ask any questions to determine if you can afford the loan. Instead, the lender makes its decision based on its ability to collect the money. This is why the lender requires a bank account. They will take the money on payday as part of the agreement of your loan.
Once the payday loan is paid off, you have the choice to take out another loan, or you can simply walk away.
What Can You Use a Payday Loan For?
There are no limits as to what you can use your payday loan for. In fact, the lender will not ask you. So, that means that you can use the money for anything. Most people use them for practical things, such as paying for bills or paying for emergencies. Others, however, use their payday loans for things like vacations, weekend getaways, and other fun things.
Are Instant Payday Loans a Good Decision?
You might have heard that payday loans are dangerous because people get caught in a cycle of repayment. The truth is, however, just like with any loan or bill, if you make the payment, you have nothing to worry about.
Yes, it is true that some people do get caught in one of these repayment cycles, but these are totally preventable and as long as you stick to the repayment plan, you should have no issue with these loans. They can help you get out of your financial bind, they can help to improve your credit, and you can request them over and over again.
Bonsai Finance can suggest a good payday loan option for you. We can help you find numerous loan options that can help you when you need a quick turnaround loan to deal with expenses. Contact us today to see how payday loans can benefit you.