Payday Loans – Providing Emergency Money: Securing a Paycheck Loan – The Way Out of a Financial Crunch

There are times when immediate cash is an absolute must. For instance, things like car repairs, medical emergency, bills etc might come up when one has absolutely no ready money. The best way to properly tackle immediate financial needs is through payday loans.

Better and Quicker

Payday loans, also known as fast cash advance loans provide a handy and effective alternative to the regular bank loans. Securing bank loans involve a lot of paperwork and credit checks on the part of banks. Some people might not even qualify for the usual bank loans. Eliminating all the above problems are payday loans which are also known as paycheck loans.

What are Payday Loans all About?

These loans are small unsecured loans ranging from $100 to $1500. These loans come with a short loan period and have to be paid back until the next payday. The minimum eligibility criteria for these loans are:

  1. The person should be at least 18 years of age
  2. He should have a full time job or a steady source of income in excess of $1000.
  3. He should hold an active checking account.

Other than this, some lenders might ask for a personal phone number and residence proof in addition to the above documents.

Reasons for the Popularity of Payday Loans

Payday loans have rapidly gained in popularity owing to its immense benefits. The following attributes of these loans have contributed to its growing popularity:

  • No Credit Checks- Even if someone is plagued with bad credit, he can still avail this loan. These loans, unlike regular bank loans, do not have a good credit record as a criterion for approval.
  • Short Approval Time- These loans are designed to address the immediate fiscal needs of a person. That is why these loans are approved within an hour or two for quick access to money. The approved money is then transferred electronically to the borrower’s bank account.
  • Less Paperwork- Most os these loans require no paperwork as everything is done electronically over the internet. In case one opts to go to a lender with a retail location, the only documents he would require would be an identity proof, salary proof and a checking account number.
  • Open 24 Hours a Day- Online payday loan websites are open all throughout the year. As emergencies can come up anytime, these loans equip a person to face all financial emergencies.
  • Available Throughout the Country- Online loans do not have the limitation of being available at just one place. As long as one has access to an internet connection, he can file his loan application irrespective of his current location in the country.

Providing a Way Out

Payday loans help a person get out a financial squeeze by providing immediate money. They come as a huge stress reliever to everyone in need of ready money. The whole process of getting advance loans is quite simple and with so many companies providing these loans, one is never too far away to benefiting from them.

Obtain Student Loans Without Cosigner

Paying for college is expensive, so if you don’t have the money and aren’t receiving enough scholarships to pay for the education, your last resort is to obtain a student loan. However, if you don’t have any other individuals available to cosign for your loan you may find it slightly harder to obtain your student loan. This is typically due to not having the credit score of an established individual. Luckily, there are several locations and companies that are willing to shell out money for student loans, as long as you have some sort of credit history.

Build your credit score. Without a credit history you cannot sign most student loan applications. Do so by obtaining a credit card a few years before heading off to school and pay the monthly fee off every month. Also make sure to pay all your bills on time. Missing a payment or paying your bill late can result negatively on your credit score.

Visit either a student loan specialist or visit the student loan online sites. The online site allows you to fill out the information and know if you are approved right away (instead of waiting several weeks when mailing in the information).

Fill in your name, Social Security number, the school you are attending and the amount you need. You may also need to fill in a student number. Complete the rest of the form and submit it (click “Submit” or mail it to the given address on the paperwork). You may need to have your school accept the loans you are taking out. This is to ensure you don’t withdraw more money then your entire school and room and board combined.

Look at the response message from the student loan company. Usually, when no cosigner is available and you have little to no credit history the interest rate is higher. This means you are going to pay back more in interest, per month, than individuals with a cosigner. There isn’t much you can do about this. You can try out other loan agencies to see if you can obtain a loan for a better interest rate. Even a rate of half a percent can save you thousands of dollars in the long run.

Accept the interest rate and submit the paperwork back to the student loan company. The company than (usually) contacts your school and works out a disbursement plan. Depending on the lender and the school you either directly receive the money from the student loan company, or the school receives all the money up front, then sends you a check for the remainder.