Payday Loans: Credit Requirements

Payday loans have no credit requirements. While a payday loan may not be for everyone it works well for many.

• You must be of legal age
• You must have a regular income
• You must have an active checking or savings bank account

How Much Can I Get a Payday Loan For?

Payday loan amounts are relatively small ranging from $200 to $1000, and they are designed to be for a short period of time payable on your next payday. This is usually 14 days but it can be up to a month depending on your pay schedule.

Payday Loans Credit Charges

Because payroll loans credit charges are usually presented as a fixed fee, they don’t seem that high. However, if you actually calculates the Annual Percentage Rate (APR), credit costs associated with payday loans are relatively high. Despite this, a payday loan can still be a better option than a late fee or bounced check.

How Does a Payday Loan Work and What Are the Payday Loan Credit Charges?

Let’s say you had your vehicle break down and you borrow $500 from the payday lender so you can do the repairs. The payday lender will lend you $500 usually for a 14 day period. This will cost you a $60 fee. The lender will either deposit the money directly into your bank account, or they will send you a check. In return, you will write a post-dated check for $560 on that due date. That’s the $500 principle plus the payday loan credit charge of $60.

At the end of the period, the lender will cash your check or you will write another check for the amount and pay an additional payday loans credit fees to roll the loan over.

The Benefits of Payday Loan

Payday loans are a good tool if you want quick, easy borrowing. Payday loans can also be extremely beneficial during an emergency when you have no other financial options to available. Because payday loans credit requirements don’t exist it’s an excellent option for those with credit problems.

The Negatives of Payday Loan

It is very important to pay the payday loan back when it is due. Otherwise you can get into financial trouble with payday loan credit fees that begin to compound. It can quickly get out of control and become very expensive.

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