Managing finances and loans can be one of the biggest challenges that one goes through. No matter how much we try to manage our finances we end up going short especially when we are affected by emergency situations.
It could be a sudden accident, visitors who visited without notice, car breakdown, natural disaster or any other liability. This usually forces us to consider payday loans so as to settle the impending bills. Payday loans can cost you a lot especially if you delay in payment and this may finally lead you into financial troubles.
In fact, if you’re looking for a loan now it’s best to apply for a payday loan with an authorized money lender in Singapore.
8 Payday Loan Facts You Should to Know
The best online payday loans can help you a lot especially if you are addressing an emergency situation. Payday loans are a sure remedy when hit by an emergency. It could be a medical bill or sudden accident that you intend to work on immediately. All you need to do is to apply and the money will be released to your account.
#1 They are short term and so easy to manage. This kind of loan usually takes about two to four weeks to repay. The money will be deducted through a check-off system. It is easy to apply. As said before, this kind of loans can be accessed easily through the online application system. The requirements are available and approval is so easy. You might have had some debts before but once you apply this, the company may approve you instantly.
#2 Processing is fast. Money is released faster once your loan is approved. The only time you expect a delay is when you apply over the weekend.
#3 Credit score may not be a big issue. Sometimes the company does not consider your previous credit score or any association with other loans and so for that case, applying the loan will mean that your approval rate is higher. Limitations of the payday loans
#4 The interest rate is quite heavy. Usually, the interest rate is 1.5 times higher. For instance, in a situation where the borrower requested for a loan of 375USD, they will be required to pay 520USD at the end of it as interest alone. This means that the interest rate amounts to almost 400% of the initial amount borrowed. Furthermore, the amount of loans given to customers ranges from $100 to $500. This is very low especially if you are in need of more finances.
#5 Payday loans have long term effects on the borrower. Most of the borrowers roll off their loans or request for an extension which will affect their financial stand in the future. The loans which will accrue into debts will become liabilities and affect your whole life such that you will be unstable.
#6 The company can access your bank account. During the application process, you will be required to state your bank account where the source of income comes through. This will affect your financial status in the account especially if you fail to clear the loan on time.
#7 They are a gateway for debt. Most of the borrowers according to studies revealed that they take up more loans per year which may go up to eight as a result of failure to repay. They may look like a solution to your emergencies but in the real sense, they are a trap that will woe you the rest of your life.
#8 Privacy and personal security. When applying for the loan you are required to give your details. Once you have submitted those credentials it will stay private and nobody knows about your loan. But be careful and choose the company wisely because sometimes the data may be sold out to other money lenders of which most of them are scammers.
Top 3 Frequently Asked Questions
#1 How Much Can I Borrow?
Payday loans can be accessed through your phone or computer as the application is done through the online platform. The maximum amount of money that you are allowed to borrow depends on the state in which you are coming from but usually loans go up to 500 USD.
#2 When Should I Return Money?
Loan terms for the payday loans usually take 2 to 4 weeks and if you fail to pay at once you may request for an extension which may incur your other interests. All this depends on the state you are coming from as some of them may allow you to renew the loan and borrow again.
#3 How Payday Loans Are Offered?
Payday loans are available in about 37 states and operate in accordance with the National conference of state legislatures. The loans are given to individuals and payment is deducted through a check-off system. They are usually short term loans and so the amount is relatively small. Anyone can qualify so long as they present the relevant credentials. These include:
♦ phone number;
♦ source of income;
♦ identification card;
♦ bank account for check off services.
Conclusion
Payday loans are good and the best solution to your emergencies. Having discussed all its benefits and limitations it is important to be keen when applying for payday loans. Ensure that you repay on time because failure to do so will mean that your loan will be rolled off which may lead to future financial setbacks.
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