Types Of Short Term Payday Loans
If you need quick money to fix your car or buy a present for your wife, you can apply for short term payday loans. These are short term loans available in small amounts, given to you to cover your expenses until your next payday. These loans have very high interest rate. You need to give a post-dated check to the lender in the amount of cash you have taken, in addition to the transaction fees and interest. The lender deposits the check on your next payday.
Eligibility criteria to get the loan
You need to fulfill certain criteria in order to get the loan. The criteria are mentioned below:
a) Age and residence: You should be at least eighteen years old to be eligible to get this loan. You should also have to be an American citizen to get the loan. You need to give documents to prove your age and citizenship status.
b) Fixed income: You should be a permanent employee in an organization and should have a regular income.
c) Bank account: You should have a valid bank account. You need to give details of your bank statement for the last 3 to 6 months.
Types of payday loans
The different types of short term payday loans are:
1. Cash advances: If you have a bad credit and are not eligible to get any other type of loan, you can opt for this type of loan. It comes with very high interest rate and sometimes you may need to pay over 400% APR (Annual Percentage Rate). You need to show your recent salary stubs to get this loan. As this loan comes with very high interest rate, you should opt for it only if you have no other option.
2. Bridge loan: Generally, you need to put up collateral to get this loan. If you have a home and want to buy a new house, you can use this loan to cover both the mortgages. You can also put up your for-sale house as collateral. You have to pay more fees and interest rates for this loan than a home equity loan.
3. Emergency cash loan: If you need instant emergency cash to pay for your medical bills or car repair, you can apply for this loan. You may also apply for this loan to a credit union, as they have less strict lending policies than the conventional banks.
4. Line of credit: If you have a credit limit with a bank, you can take out as much money you need, as long as you don’t exceed the maximum limit. A very important benefit for this loan is that, you have to pay interest only for the part you have used. Say, you have a credit limit of $35,000 and you have taken out $20,000, so, you need to pay interest for only the latter amount.
You can take advantage of this loan if you need some emergency cash, but, you have to keep in mind that you should not take an amount which exceeds your limit, so that you don’t have any trouble to repay the loan.
Processing your request, Please wait....
