The Ultimate Guide to Loans

Things You must consider when applying for a Payday Loan

Are you experiencing financial difficulty right now? One of your immediate options will be your friends or your family but when it comes to guarantee if they can lend you, it is still a question. Oftentimes, they may not have extra cash to lend to you.

You can actually apply for a salary or payday loan, often termed as cash advance loan, since this is a very fast and easy application. But what is this loan? Basically, this type of loan is an unsecured loan. This means that you don’t have to submit any collateral in exchange for the loan. The most popular lenders who offer this type of loan are the banks. These banks actually offer this type of loan to help individuals who are in need of cash that is larger than any of your friends or family members can lend to you. But can you apply?
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Just like any other loan, you still have to qualify for you to be granted. You need to be employed since this will be your source of income to pay the salary loan. Therefore, those who are earning regularly are the ones who are mostly qualified for this type of loan. Your age also dictates your qualification. Most banks accept 18 years old applicant but there are still few of them who only accept 21 and above.
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Aside from your age and source of income, you also need to qualify in terms of credit rating. Banks have their own credit criteria to assess a borrower. This is done discreetly so you will just know if you qualified or not once they perform the credit scoring. Part of the criteria in credit scoring is the loan history of the borrower. If you have a good record before, you have higher chances of qualifying. Otherwise, you will immediately be rejected.

Payday loan proceeds can be credited to your bank account or you may receive it in cash or in the form of check. Aside from these three modes of loan releases, a credit card holder can enjoy withdrawing the amount from the ATM since these card companies also offer the same loan products to their valued clients.

But how are you going to repay your loan? Once you are qualified and you have provided the documents they need, you can either repay it by issuing PDCs or you can pay it over-the-counter or debit from your account. The term of the loan will depend on your preferred term or depending on your salary. The bigger is your salary, the shorter is your loan term.