Is a PayDay Loan Right for You?


In times of uncertainty, young working people often find themselves facing unexpected expenses, mounting debts or financial hardship. It can be daunting, trying to figure out a way to stay afloat and keep your head above water. Luckily, there are a few ways to make some extra cash and take care of those expenses quickly and easily.

calculator and coins

Photo Credit: Breakingpic

Many young people choose to apply for payday loans to help ease their expenses. These are a good idea for young people who struggle financially for many reasons. For starters, payday loans are often less strict when it comes to the criteria they require from their borrowers. They are willing to work with young people who sometimes have spotty work history or may have bad credit. It is easier to get approved for payday loans than larger loans from lenders such as banks and credit unions, whose strident criteria may disqualify you. 

While payday loans do work with those who have bad credit, usually they do require you to be employed with a steady paycheck, as well as have some form of collateral to put down (this ensures that the lender is protected in the case that you default on payments). Many also require that you have a bank account. However, as long as you’re employed and have a bank account and collateral, you can apply and likely be approved within minutes. 

Applying for a payday loan is easy, can be done online in minutes, and often, a payday loan can get you your money the same day you apply for it, ensuring that you get those bills paid, fast. The amount you’re approved for depends on how much money you need, compared with your income. Most who apply get the amount they ask for or very near to it. Many payday lenders also offer refinancing if you find yourself in a tough spot again (or if you can’t make a payment), allowing you a little more wiggle room, and once you’ve paid off your loan, they can offer you additional loans with better interest rates or higher dollar amounts. 

While interest rates are higher than other loans, and there are a few other risk factors, the advantages make it worth it to many.

Most payday loans have a set payment schedule, due weekly, bi-weekly or monthly depending on the particular lender you work with. Make sure you make your payments regularly to avoid collections calls or defaulting on your payments, which could result in garnished wages or losing your collateral. Again, call your lender and give them a heads up if you can’t make the payment – they may be able to work with you. 

The acceptance of those with lesser credit, the ability to refinance, and the easy application and same-day payments are all reasons that many young people enjoy using payday loans when they find themselves in financial hardship. If you think a payday loan might be right for you, apply today and see if you can get fast cash for your needs. 

Note: This is a collaborative post
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