Three Common Payday Loan Concerns Addressed

Posted on: 13 October 2016

Experiencing a serious financial shortfall can be an extremely stressful situation for anyone to encounter. Fortunately, it is often possible to take out a payday loan to help you make ends meet during these difficult times. However, if you have limited experience and knowledge when it comes to these loans, you will likely benefit from learning the answers to a few of the more frequently asked payday loan questions and concerns.

How Important Is Your Credit History When Applying For A Payday Loan?

Some individuals may not seriously consider taking out a payday loan because they have bad credit. While it is true that this can prevent you from receiving conventional loans, payday loans rarely consider the credit history of applicants. Rather, the employment and earnings history will be more applicable to these short-term loans. As a result, individuals that have credit problems will usually still be able to obtain a payday loan as long as they have a solid history of stable work and earnings.

How Long Will It Take For You To Receive The Money?

If you are approved for a payday loan, you will not have to wait very long to receive your money. Many of these providers will transfer the money to your bank account as soon as you are approved. Depending on the deposit policies of your bank, this money will be available within a few business days of the transfer.  

What Are The Repayment Terms For These Loans?

Some individuals may be leery of taking out a payday loan due to concerns about the repayment process. Often, these individuals assume that their entire next paycheck will have to be used to repay this loan. Luckily, this is not the case as there are strict limits in place governing the amount that a payday loan lender can provide. As a result, these loans can often be paid off in their entirety without taking your entire paycheck. Depending on your particular circumstances and the amount of your payday loan, some lenders will allow you to repay this balance over a series of payments to help reduce any challenges that may arise from repaying this loan at once.

Payday loans can be invaluable resources to those that are facing serious financial shortfalls. However, it can be difficult to evaluate the practicality of this financial tool if you are not very informed about this type of loan. By understanding that credit history is not a major concern for these lenders, that it can take a few days for the money to show in your account, and what to expect during repayment, you can be better situated to decide whether or not this type of loan is right for your situation.