Payday loans may be an option if you need a cash infusion and have a good credit score. These short-term loans are designed to bridge the gap between paychecks and can offer up to $1,500. Read on for more information about what they’re all about!
The best payday loan are unsecured personal loans meant to bridge the gap between paychecks when cash infusions are needed most (i.e., on payday). They typically offer up to $1,500 and must be repaid through payroll deductions or by making post-dated payments directly from your checking account (though this will incur additional fees).
Though you may never need to borrow from a payday loan company, as a consumer, you have the option to do so. That’s because these unsecured loans are typically offered through storefront offices or over the phone and are backed by an assortment of lenders. This means that many companies will offer the same product with slightly different terms.
The most significant decision you’ll have to make when looking into a payday loan is what type of short-term credit lifeline you need.
A payday loan is an ad-hoc, short-term loan that your next payday must pay back. You will accrue additional fees if you cannot pay it back by your next payday. The whole purpose of the payday loan is to bridge the gap between paychecks and cover expenses that occur in the meantime. They are designed for emergencies only, and borrowing more than you can afford to pay back won’t help you in the long run. It’ll only lead to financial problems!
A payday advance is also a short-term loan that your next paycheck must pay back – but only if it’s been at least 14 days since your last paycheck was issued.