Whether you’re facing a medical emergency, a sudden home repair expense, or if you’re just short on cash at the moment, perhaps you’ve thought about taking out a payday loan.
Every year, close to 84 million people take out some sort of a personal loan.
But are payday loans a good idea, and how exactly do they work?
Read on to discover the truth about payday loans.
What is a Payday Loan?
The easiest way to think of a payday loan is that it’s there to bridge the financial gap for you between paychecks.
In other words, you know that you would be able to afford to make a purchase or pay a bill if you could get your next paycheck early — but that’s not a possibility. Payday loans are suitable for people that have a current income, but that often find themselves living paycheck-to-paycheck.
What Can You Spend Payday Loans On?
Perhaps the most well-liked truth about payday loans is that you can spend them on anything you’d like.
Of course, we still encourage you to make smart financial decisions. (Buying a cool outfit or spending the money on a wild night out at the club isn’t a good idea.)
But not having to prove to a lender how you plan to spend the money in order to show that you’re “worth” giving a payday loan to is a huge help to many.
You’ll also be approved for payday loans quickly, sometimes within a single day. They’re often available in amounts between $300-$5,000.
What Should You Look for in a Payday Loan?
Are payday loans a good idea?
That really depends on your individual financial situation and, even more so, the specific terms of the loan.
First of all, never borrow more than you truly need and can afford to pay back. The last thing you want is to end up trapped in an endless cycle of debt. Usually, payday loans need to be paid back incredibly quickly — so expect a short term here.
You should also ensure that you understand and can afford any interest rates associated with the loan.
If You Have Bad Credit
If you’re one of the millions of Americans with a bad credit score, you may wonder if you qualify for a payday loan.
The good news is that most payday lenders don’t check your credit score. Instead, they’re much more interested in your proof of current income. You may need to provide bank statements or a pay stub to show these lenders that you’re capable of paying back what you borrowed from them.
This means you can get a loan without worrying about your credit score.
The Truth About Payday Loans: Wrapping Up
Now that you understand the truth about payday loans, we’re certain you’re ready to apply for one.
We can help you with that.
Our online application makes getting a payday loan quickly incredibly easy because we provide you with options from multiple lenders.
Apply with us today, and get the money you need in just 24 hours.
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