With the recent recession, more and more people developed a bad credit history, due to a short period without work, some unexpected taxes or other things that summed up and rendered you in the impossibility of paying your credit on time. Does this make you not eligible to any more loans…or not?
There are some online companies that understood the requirements on the market and the need of so many people to take a loan in order to relieve some other financial strain they experience in their lives. Those companies offer a relatively small amount of money, up to 1000 dollars, as a payday loan, under very lax conditions. The person that intends to take the payday loan must be employed and have a salary to cover the requested amount, must be over 18 years old and also a local resident. Usually, the lending company does not even ask for an ID and the approval comes within an hour. The procedure is very easy but it involves a great risk from the ones lending the money.
Before applying to this type of credit ask yourself if you really need the money. A bad situation can become worse if you can’t repay your payday loan on time. It would be wise to assess your present situation and the amount of money you could spare next month in order to repay your loan. If you are in a temporary bad situation or something unexpected just happened and it does not affect your revenues, than such type of loan is a good solution. If you, however, are the only employed person in the house and your monthly expenses exceed your earnings, than you’d just get in more debt with such a loan. Whatever you decide, try to take as little as possible, as interests are a lot higher than in “normal loans”.
The high risk is what makes the interest so big. The amount of money must be returned in no more than thirty days from the moment the cash enters your account. After these thirty days you not only need to repay the whole amount, but also approximately 25% more. Also, for the person that does not give back the sum with its interest in due time, the fees and penalties are very high. If you do not pay the payday loan in time, the interest can increase up to several hundreds, so take one of these loans only if you know you can give the money back.