A Payday Loan is a loose term used to describe a variety of short-term loans which are typically available to almost anyone with a regular source of income. Most of these loans are also available for people with bad credit. There are a few subtle features that may differentiate one payday loan from another. It may be useful to understand these common features to help you make a decision on the best loan to take.
Online Payday Loans
These come in a wide variety with ranging repayment terms, interest rates, and approval terms and so on. The one thing that these loans have in common is the entire process is completed online. You don’t have to visit physical premises to submit any documentation or collect your cash. You simply fill out an online application form and once approved, the money is sent directly to your bank account. These payday loans are quick, simple and convenient.
You however need to do your due diligence because scammers can easily masquerade as genuine lenders on the internet.
Instant Payday Loans
As the name suggests, instant payday loans are approved and money disbursed almost immediately. Loans generally take time to apply, get approved and for the money to finally arrive in your account. Online venders who offer instant loans have streamlined processes so that the application process and approval is completed in just a few minutes. You may receive the money in as little as a few hours or within a day of applying for the loan.
This is a good option if you are facing a financial emergency and don’t have the time to consider or wait for other financing options. These loans go by a variety of names including 1-hour loans, instant loans and same day loans which reflect how long you can expect to wait to get your money.
Payday Loans for Bad Credit
These short-term loans are specifically designed for people with bad or poor credit ratings. Many vendors are not willing to extend loans to people with a track record of poor repayment or defaulting. Payday loans for bad credit are specifically designed for those people who otherwise wouldn’t be eligible for a loan.
You of course need to have a regular income to qualify for the loan because after all you need to repay the money somehow. Note that some vendors claim not to check your credit score for these loans. This is erroneous advertising since all FCA-authorized direct lenders must check client’s credit score with at least one agency. These loans also typically attract higher interest rates than most similar loans largely because of the perceived risk of lending to people with poor credit history.