Emergency procedures; a sudden illness in the family; unexpected car troubles; the list is endless when one imagines the various circumstances life may throw at us, straining our financial capacities to the very limits with little or no warning.
Should you find yourself in a financial bind, as it happens, even for the most fiscally responsible among us, Payday loans are the god-sent that enables us to regain our financial balance and forge ahead at least in that moment of need.
What is a Payday loan?
A Payday loan refers to a short-term, unsecured personal loan, usually with a high rate of interest attached to its repayment. Disregarding the implication in the name, payday loans aren’t necessarily linked to one’s salary or working terms. They acquired the name because a lot of the loan applicants would pledge to repay the loan amount on their next payday.
How to get your application approved and optimize the benefits
1. First and foremost, resist the temptation to falsify details of your financial situation to your lenders. A common mistake is thinking that this will improve chances of obtaining the loan but due to the thoroughness with which most providers verify potential client’s financial information, this may make them deny it instead; moreover, it may then be more difficult for you to access the loan facilities in future times of crisis.
2. The loan amount you are applying for should be small relative to your income in order to maximize the chances of having your application granted as you’ll represent a lower defaulting risk.
3. Don’t be overly hesitant to apply for a payday loan should you happen to have a poor credit rating – payday loan facilities are designed to cater to those in such situations as well as people whose income isn’t very regular.
4. The Golden Rule with regard to payday loans is; never borrow more than you are confident you’ll be able to pay back within a short time.
5. Be keen, ensuring that you have all the relevant financial information they may require with you when you’re applying for the loan. Proof of a legitimate income and legal age are the usual prerequisites.
6. You’d do well to set up an overdraft protection facility on your checking account in order to safeguard yourself against any overdraft fees you will incur should you perhaps forget to make your loan repayment on time or otherwise find yourself unable to make a prompt payment.
7. Engaging the services of a brokering agent may save you the time, energy and money you’d expend carrying out the exercise yourself as well as maximize your chances of obtaining the most favorable loan terms possible. This is because brokers will, most of the times, have the contacts and resources to explore many more lender options than you’d be able to on your own.
8. Shop around and research various lenders and the terms at which they are willing to offer you a loan; whatever decision you arrive at, making it a well-informed one can only serve to your advantage.
Payday loans or Advances and their providers have, for the longest time, been the object of much negative press and public opinion. Many are of the opinion that they occasion more harm than good but, I believe, with these guidelines directing your efforts, you’ll be able to realize the financial relief you’re in need of.