What Is Payday Loan

Payday loan is a short term lending designed to help employee’s that depend on monthly wage to meet their financial needs. We all know that most employees live out their wage before the next payday check and get stranded midway. If such distressed worker still has unsettled bills, he may need to borrow to meet up his obligations. To borrow he has several options.

First, he can ask from relations or friends. This option has failed many in the past because most friends and relations usually are out and dry for such lending. Secondly he can go to the bank for an overdraft. This option takes much time and attracts higher interest rate. Sometimes may not be successful because of banks complex protocols. The last and best option is a payday loan.

Payday loan is the most sought after option because it’s convenient, quicker and hassle free. It requires neither documentation nor an applicant’s physical presence. It requires no credit check or collateral. All you are required to do is to fill out and submit the online application on a lenders website. The relevant information needed in the form is your personal data, employers and bank account details. With these you qualify.

Apart from the above, you have to meet other criteria. You must be 18 above and a resident citizen of the country where you seek loan. You must be employed and earning a minimum wage required by the industry regulators before you can get a loan. This minimum wage varies from country to country. In the U.K. you must be earning at least 750 pounds. While in America and Canada, your wage must be a minimum of $1,500. Whatever your wage is you can’t borrow above your earning.

Another thing that varies is the interest rate. Every lender operates his own business according to his terms and conditions. Though some states in America regulate interest rate and sanction any lender that violates the law. However, it’s always good you know what is obtainable in your state or country to save yourself from payday predators.

As a beginner on payday loans, one of the hassles you may face is that of choosing a lender. Choosing from the numerous lenders you find in the internet is sometimes confusing and overwhelming. I usually recommend the use of reliable private websites that connects one directly to lenders, thereby saving one the time that would have been spent on browsing and bouncing between websites. Most people find my recommendation very convenient. You can give it a try.

One thing you must avoid is to deal with any lender who asks you to pay for application and approval. Payday loans are free except for the interest you will pay at the point of repayment.

I believe this little information will be a helpful guide.