There are several types of loan. Do you all know them? There is the personal loan that we talked about last week. And there is also the payday loan that you may not know yet. Keep reading and find out if you need it or not. guaranteed payday loans no matter what
A payday loan is a loan that is an advance on next paycheck, the investment made by a lending agency and not your employer. This is a short-term loan of up to, usually, $ 1500. It must then be refunded as soon as you receive the pay for your job within two weeks.
When Do You Need A Payday Loan?
Generally speaking, a payday loan is a loan that you request and receive if you are desperate and need cash immediately, in the case of unforeseen expenses; for example, car repairs. You should not use this type of loan to pay rent, heating costs, gas or groceries. Only use it if you are desperate. This is just a last resort.
This type of loan is much less severe than some others, but there are still conditions to be eligible. You must prove that you have a job or at least some professional stability. No responsibility, no source of income, so no loan. Also, be sure you will be able to repay the loan in question. Since the interest rate is high, you will have to repay an amount higher than your investment. If you pay late, there is a fee. And if you are not even able to pay, in addition to costs, the lending company can sue you, or also have your property seized by a bailiff. So, the word of order; be sure you can repay.
The Difference Between A Payday Loan And A Personal Loan
Do not you think it looks like a personal loan? You are not wrong, but you are not quite right. There are some nuances, and here they are.
- The repayment period of the payday loan is shorter than the personal loan. Two weeks on pay against up to a few years for the staff.
- The maximum payday is $ 1500. A personal loan usually allows you to go up to about $ 10,000.
- The interest rate of a payday loan is much higher. We are talking about no less than about 50% for a single investment.
- Unlike a personal loan, the payday loan does not make credit inquiry.