It can be financially devastating if an emergency occurs, such as if the car has an engine desperately in need of repairs or if someone needs to go to the hospital. These emergencies incur large bills that will often need to be paid immediately, before any services can be completed. Most people do not have a large sum of money available for these emergencies. Luckily, there are short term loans that are available for precisely these circumstances.
What are Payday Loans?
These loans are essentially a way for a person to have access to a large sum of money before they are paid. The loan is usually smaller, between $5 and $500, which minimizes the risk to the lender. It is ordinarily paid back within two weeks of when it was lent, after the person who took out the loan has been paid.
What Information is on the Application?
The information that needs to be included on the application for the loan is less in-depth than the information that needs to be included on an application for a regular bank loan. The contact information of the person who is applying is necessary because it will allow the lender to get in touch with that person should there be an issue with the loan or its repayment. Some applications will require information about the person’s family or friends and how to contact them. They will be contacted if the loan has not been repaid. Other information includes the person’s employment information, which will reassure the lender that the person will be able to repay the loan. Finally, the bank account that the person wants the money transferred to will be included so that they can have access to the money as soon as possible.
How is the Loan Repaid?
When the loan is approved, the person getting the loan will give the lender a check for the amount of money that the loan was for, as well as any fees or interest that have to be paid. A date that the check will be cashed is determined and, on that date, the lender will take the money out of the account and be repaid. Should a person need to extend that repayment time, he or she can have additional days added. However, this will usually incur an additional fee.
Can I Get Payday Loans Online?
This type of loan can be obtained online. The application is roughly the same as the application in a physical location, with a few additional stipulations. More information will be gathered to minimize the risk that the lender takes. The fees will also be higher for that same purpose. The loan is repaid through the Internet, usually by credit card or directly from a person’s bank account. If a person is uncomfortable using this, he or she is able to mail a check for the amount that was lent, plus any fees, to the offices of the lender.