The payday loan industry is gaining ground in quite a few countries – these kinds of loans have been in existence for centuries now. Most often than not, people with bad or poor credit ratings are the ones who apply for these loans as they are unable to get funds through regular sources of money like banks. Generally, banks and other financial institutions usually require a specific kind of collateral and have a set criterion which borrowers have to meet before they get the required funding. Loans taken through banks have to be used only for the purpose stated – there are no such restrictions on Quick loans. This feature attracts a number of borrowers and the other reason is that these loans are available almost instantly, unlike bank loans.
Things to know about Payday Loans:
- Almost every payday loan is a short term loan. They are offered for a period of 2 to 4 weeks only.
- Payday lenders have a borrower’s bank account information and withdraw the money when it is due, along with the agreed amount of interest. This may not always work for the borrower as they may need the money to pay their bills.
- People with financial problems can get in a lot more trouble especially if they roll over loans. There are a few people who have used it as a long term strategy to get out of debt but this requires a lot of discipline.
Eligibility Criteria for Payday Loans:
Payday or Quick loans and criteria can vary from country to country but in general, here are some that are universal:
- borrowers have to be at least 18 years or older before applying for this loan
- they have to be citizens and offer valid ID
- they should have a steady job and earn at least $1000/month after tax
- have a valid checking account
- have a verifiable address and phone number in their name for at least 6 months
- provide information about their employer
If all these criteria are met, then a borrower is eligible to apply and get a cash loan. Loan officers will verify this information and then decide on the loan amount.