PERSONAL FINANCE BLOG

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Quick Payday Loans
27 Nov 2018

When Do Quick Payday Loans Make Sense?

Life is full of the unexpected, including financial “bumps and bruises” that seem to pop up out of nowhere and take you off guard. Sooner or later, almost everyone is going to find him or her self in a situation where a short-term cash shortfall or sudden emergency expense hits without notice. One solution to help you wade through a financial bottleneck to better days ahead is quick payday loans.

Just How Quick Are Quick Payday Loans?

Let’s say your roof is leaking and you don’t have sufficient cash available to fix it, or your car is your only means of transportation to and from work and it just broke down, or you simply got a lower than normal paycheck but are going to get a good-sized check in 2 to 4 weeks.

There are many situations where you need cash on hand fast to take care of pressing needs. Even if you have a reliable income, it’s easy to get stuck now and then “between paychecks” unable to make all ends meet.

How can quick payday loans help? They can get you the needed cash faster than just about any other financing option. Usually, you can get the borrowed cash deposited to your account within one, or at most two, business days. It can take weeks to process a traditional bank loan – but you can get a payday loan as quick as 24 hours.

Who Can Qualify For Quick Cash Payday Loans?

It is much easier to qualify for quick cash payday loans than for most other types of loans. There are a few basic requirements, and that’s it. For example, you have to be 18 or older, normally you have to have an active US bank account, and you have to have a verifiable source of income sufficient for paying back the loan on time.

Also, if you have an outstanding payday or other fast cash loan – especially from the same company, then you may not be approved. Or, if you borrowed from that lender in the past but defaulted on the loan, that would disqualify you.

But the vast majority of those who apply for these kinds of loans are approved. With most payday lenders, it matters little or not at all what your credit score may be. They aren’t restricting loans based on credit history, and the only real criteria that guides approval is whether or not you can reasonably be expected to have the funds to repay the loan on time.

How Do I Apply For A Quick Payday Loan?

In the past, you had to go to a physical lender’s office downtown to apply for a payday loan, where you might have to wait in a line and fill out long, tedious paperwork. Then, you would have to wait, perhaps, days to find out if you were approved or not.

With a quick payday loan applied for online, none of that applies anymore. You apply from the comfort and convenience of your own home. There are no specific business hours you have to apply during, and there’s not need to spend time and gas money to go wait in a line.

You fill out a few short forms asking for only basic personal and financial information online. Then, upon submission, you often get an instantaneous approval notice right on your screen. At most, you have to wait for an email that might come minutes, or at worst, hours later. For the most part, approval criteria with these lenders is pre-set and an algorithm is run to determine the outcome – so you get an immediate response, up or down.

How Much Can I Borrow?

How much you can borrow on a payday loan will depend on your regular income and expenses. Normally, you aren’t expected to come up with more than 20% of your next paycheck to pay back the loan – so your loan amount is limited accordingly.

That said, some people have situations where they have very low monthly expenses and might be able to afford, say, 30% or even 50% of their income for the repayment. Or, if bills are eating up a lot of each check, maybe only 10% would be workable. Each lender will work with you to determine how big of a payday loan you qualify for, but not all of them will use the same “rules” – so don’t give up just because one lender didn’t give you a big enough principal.

You obviously want to borrow an amount that will be sure to get you through the current financial difficulty, but be careful not to borrow much more than that and to spend the borrowed cash accordingly – you don’t want to fall short of solving the problem even after taking the loan out, nor do you want to pay any more in interest and fees than necessary.

How Long Can I Borrow It For?

Payday loans are very, very short term loans. They may or may not literally be due on your next paycheck, but that’s the general idea at least. Most lenders will give you the option of a two week or a one month loan term.

Since lenders won’t make much off of such a short loan term, they usually will charge higher interest and one or more fees to make up for it. This type of loan will have high rates but not necessarily a high total amount of interest/fees paid. It all depends on the details of your loan and on whether you pay it back in full on time to avoid a late fee.

What If I Need More Cash & More Time To Pay?

Payday loans aren’t the only fast cash loan type available. There are other options, preeminent among them being the personal loan. A payday loan may work well when you need to borrow only $100 to $1,000 at most, and when you can repay in a month or less.

A personal loan is usually used for borrowing $500 to $5,000. Personal loans are paid back in regular monthly installments, with the payment size being fitted to your income to make it affordable. Most loan terms for personal loans range from a few months to a few years.

If you don’t think a payday loan will allow you to borrow enough cash or if you need multiple months to repay, then you’re better off with a personal installment loan. Note that personal loans are just as fast and easy to apply for online as are payday loans, and they require no collateral and do not usually require a good credit history – approval is, like payday loans, based simply on your ability to repay the loan.

Finding Your Best Offer And The Best Payday Lender

Even when you’ve decided that a fast cash payday loan is what you’re looking for and you know how much you want to borrow and for exactly how long, there’s still the question of locating your best offer and a reputable lender.

Almost all lenders are online these days, so a quick Google or Yahoo search is going to bring up a plethora of possibilities. The problem at that point isn’t too few options but too many. No one has time to sift carefully through hundreds or even dozens of lenders and offers – and just going with the few listed on the first search engine result page is a haphazard method that won’t ensure good results.

Online review sites of payday lenders may help some, but again, the total pool of sites reviewed is necessarily limited – and the opinions may be slanted because the review site owners aren’t truly neutral.

A better option for finding your best payday loan offer is by using the free and powerful search engine at Bonsai Finance. We let you start with a data base including hundreds of options and then narrow it down based on your own chosen search criteria. You can restrict your search to lenders that accept bad credit, for example, or to those who have low fees or lower interest rates. It’s totally up to you.

Bonsai’s search tools let you find the best few contenders in a matter of a few minutes. Then, you can evaluate just those best options more in depth or ask Bonsai’s expert staff for assistance.

No one wants to have to take out a payday loan, but when no other options can get you the cash you need fast enough, it may be the best choice. But neither do you want to choose the wrong lender or get anything less than your best loan offer. At Bonsai Finance, we equip you to quickly locate and apply for the most advantageous quick payday loans available to you online. That saves you time and could potentially save you money and stress as well!