A quick guide to the world of payday loans 

We all have moments in our lives where we need to get hold of emergency funds quickly. There is nothing to be embarrassed about when this happens. You may have had a medical emergency this month, unexpected damage to your car, or have just overspent for another reason… 

Whatever your reason for needing money quickly, you are probably wondering what the best type of loan is to take out for your situation. Today, we are going to help you discover if a Payday loan is the right choice for you. 

If you are thinking about taking out a personal payday loan then you should read this article before doing so. We are going to teach you exactly what these types of loans are, who they suit best, and how to take out a Payday loan. 

Keep reading to find out more…  

What are Payday Loans?

Payday loans are a form of short term personal loan. 

Payday loans are usually small loans that are designed to be paid back the next time you get a paycheck. Payday loans are usually paid back between 2-6 weeks after they have been taken out. 

Because you are borrowing less than you are going to earn in the next month, even people with bad credit scores can get payday loans. 

Many people turn to payday loans because their application process is very quick. Some lenders can get the loan approved in less than an hour. The turnaround time for getting money into your account is also typically quite short – between 4 and 48 hours (depending on the time of the week you apply for the loan). 

When you are taking out a payday loan, you will usually borrow a small amount of money that is typically less than your next paycheck. You will be given a date on which the money must be paid back and you will also be given an amount of interest you must pay. 

The better your credit score, the less interest you will have to pay on your loan. 

Who are they best suited for?

Payday loans are a good loan for anyone who is looking to take out money quickly but does not need it for the long term. Payday loans are usually paid back within 6 weeks of being taken out. So, you should only take out a payday loan if you know you are going to be able to pay the money back that quickly. 

They are a great option for people with bad credit scores. If you can prove to the bank that you will earn enough money from your next paycheck to pay the loan back then you are very likely to be approved. Even if you have bad credit. 

As a bonus, paying back a payday loan on time will improve your credit score. 

Summary: 

Payday loans are good for: 

• People with bad credit scores 
• People who need money quickly 
• People who only need money in the short term 

How to apply for a Payday loan 

If you have decided that you want to take out a payday loan then you will need to apply for one. 

You could go to your local bank or check out CreditNinja’s online alternative. If you apply for a payday loan online you are likely to get your money much quicker and you may get a better deal on the interest rate. 

If you are applying for a loan online, then you are going to want to make your way to the lenders’ website and fill out their loan application form. 

When you are filling out this form you are going to want to be totally honest, particularly about your credit score and financial history. Lying on a loan application is considered fraud and you can face legal consequences for doing so. 

The good news is that Payday loans are regularly approved for people with bad credit scores because they are such short term loans. You will most likely have to pay more interest though. 

Once you have handed in your application you will need to wait for a few hours before the loan is approved. When it is approved you will be given your interest rate and the day that you must pay the loan back. 

The money will then be transferred into your bank account within 24-48 hours. 

You can then do what you wish with the money before paying it back on the agreed date with interest.