{"id":1914,"date":"2019-02-22T16:35:04","date_gmt":"2019-02-22T21:35:04","guid":{"rendered":"https:\/\/www.lendvious.com\/blog\/?p=1914"},"modified":"2019-10-22T08:24:12","modified_gmt":"2019-10-22T12:24:12","slug":"everything-you-should-know-about-payday-loans","status":"publish","type":"post","link":"https:\/\/www.lendvious.com\/blog\/blog\/2019\/02\/22\/everything-you-should-know-about-payday-loans\/","title":{"rendered":"Everything You Should Know About Payday Loans"},"content":{"rendered":"

When you\u2019re short on cash and have an unavoidable expense to meet, what\u2019s the first thing that comes to mind? A payday loan? Well, it\u2019s true that payday loans can be a lifesaver when you\u2019re in urgent need of cash. They provide quick relief from the cash crunch and cover you until your next payday. But remember, these loans also come with high fees and interest rates. So, before you turn to payday loans for relief, understand them thoroughly.<\/span><\/p>\n

What are payday loans?<\/h2>\n

These are short-term loans, usually under $500. They\u2019re called payday loans because they\u2019re meant to bridge the gap between paychecks. These loans are also called by other names including, cash advance loans, deferred deposit loans, and check advance loans. \u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

How do they work?<\/h3>\n

Payday loans allow you to take a cash advance from your upcoming paycheck. These loans differ from one state to another. But wherever you go, these<\/span> loans are fundamentally characterized by three main features: short repayment term, small loan amount, and easy qualification. When you apply for a payday loan, the lender verifies your income, checks your account information, and delivers the amount you need in a matter of minutes. However, in exchange for the amount, you will be asked to provide a signed check or permission to withdraw money from your account electronically. You\u2019re required to repay the loan immediately after your next payday.<\/span><\/p>\n

Who uses payday loans?<\/h3>\n

According to a study by the Pew Charitable Trusts, about 12 million Americans use payday loans every year. In general, anyone with a steady income and a checking account can opt for a payday loan. As per the study, the most common borrowers are those without credit cards and savings accounts.<\/span><\/p>\n

Qualification Criteria for Payday Loans<\/h3>\n

To qualify for a payday loan, you should be at least 18 years of age, have a steady income and an active bank account. You will be asked to provide an ID, and proof of income. However, meeting these criteria does not guarantee you a payday loan. Your loan application could be rejected for one or more of the following reasons:<\/span><\/p>\n