There are a few different options when it comes to getting a loan. There is, of course, the traditional option of a secured bank loan. These generally have pretty good terms, but they can have a complicated application process, it can take a long time to receive the money, and if you have less than stellar credit this type of loan may not be an option at all. Non-traditional lenders can also be an option. Sometimes the credit regulations are not quite as strict, and there may not be as much red tape, but they still may take a few weeks to process, the terms may not be quite as favorable, and credit is still an issue.
So what is available if you need cash quickly, or if you need cash but do not have such great credit? Payday loans are this perfect option for this type of situation. They are based on your income to the extent that the loan has to be able to be paid off with your next paycheck. Of course, this means that this solution is temporary only. The process is quick and simple, but the terms are often a little tighter. There is less time to pay the funds back, and the interest rate may be higher. However, the application can be done right in your own home from a computer, and approval as well as receipt of the funds can take place in as little as a day or two.
Frankly, it just doesn’t matter. There is no need to worry about it, because it isn’t even an issue. It isn’t checked and generally the subject does not even come up. The applications will most often only ask for proof of employment and a way of measuring what your next pay check will be such as pay rate. Approval will be based on this amount, and the funds will be direct deposited into your bank account. The repayment will be direct drafted as well, so the entire process is extremely simple.
The simple answer is however you need to use it. However, there are some general guidelines that can be useful when it comes to taking out payday loans. It is usually better to reserve this type of loan for emergency situations that require funds quickly. An example would be if you need to visit the emergency room or your automobile needs repairs. You may not have time to wait for funds from a traditional loan, and the only other option may be to let other obligations slide to take care of the emergency. Alternatively, you could pay your regular expenses as normal, and use a payday advance loan to cover the emergency. Then, use the time until your next paycheck to raise the funds to pay it back. This will avoid having an issue paying regular expenses when the money for the payment is drafted out. Consider selling items or taking a temporary second job to cover the loan once the emergency has passed.