Perhaps, you find yourself in a bit of a financial bind and are looking for options on how to navigate your way through it without harming your credit score or ending up in the same place again ere long.
If so, you may be considering payday loans as a possibility. But before you can make an informed decision on whether they are right for you, you first need to know at least the basics on how they work. So, how do payday loans work anyway?
How Do Payday Loans Work?
If you have been asking yourself the question “how do payday loans work?” we are about to clear up any confusion. There are several key elements that define what payday loans are and how they work.
First, a payday loan is a very short-term loan. You are borrowing money for only 2 or 4 weeks before it’s due. Anything longer would not be a payday loan but probably would require a personal installment loan instead.
Second, payday loans typically allow you to borrow a principal of anywhere from $100 to $1,000. That’s the limit for these very smallscale loans. Third, you normally need no collateral to take out this kind of loan but only need to verify sufficient income to repay on time. Fourth and finally, almost all payday lenders are willing to lend to those with bad credit or little to no credit history.
Application & Getting The Cash
Another reason for getting a payday loan as opposed to other loan options is that you can get the cash quickly without any complications. You apply online and fill out a couple simple forms in just a few minutes’ time. Click! – you are instantly approved! (There are very few exceptions.)
Your borrowed cash arrives direct to your US-based bank account within one or two business days. And you can immediately put it to use without any limitations on how it can be spent.
Repayment is in one, simple lump-sum payment. Most online lenders will require you to allow auto-withdrawal from your checking account. But that’s not really a bad thing since it prevents the possibility of forgetting to pay on time and needlessly suffering a late fee.
Locating Superior Payday Loans
There’s no doubt that the payday loan market has blossomed to gigantic proportions. There are simply too many lenders and loan offers out there to easily sift through them all on your own in a reasonable amount of time. There are many factors to consider, and it would be difficult to compare loans accurately by just jumping from website to website.
Some other methods of loan-searching also fall short. Going on word of mouth is risky at best. Using online review sites risks using a less than even-handed reviewer. And physically driving around or calling company after company on the phone can be expensive, while severely limiting your field of choices.
The best way to search for payday loans is clearly online, using a “smart” loan search engine such as those offered by Bonsai Finance. We enable you to plug in all your most important search criteria and search through hundreds of loan options in a matter of seconds. No other search method can do that – and Bonsai’s services are free of charge.
Bonsai Finance is not a lender and does not represent a lender or a group of lenders. We are independent and dedicated to matching loan-seekers and lenders in a way that benefits both. Our goal is to make “a happy union.”
Once you know the answer to the question “how do payday loans work?,” the next step is to rely on Bonsai Finance to connect you to your ideal payday lender and loan offer. We look forward to serving you!