Using Emergency payday loan, a person can borrow up to $1000 to assist the handling of a financial emergency. These loans can be repaid in one or two pay periods.
Minimum requirements
The applicant must be a resident of the United States. The age must be minimum 18 years. There must not be any outstanding payday loans. There has to be an active checking account. The minimum monthly income must be $1,000. In some states in the United States, this service is prohibited by law and hence is not available.
The funds are directly deposited in the checking account for quick access to cash to balance the budget, consolidate bills, handle emergencies or have some money in the wallet. The applicant gets a no-obligation quote that has details regarding the terms and rates of the emergency payday loan.
Confirmation of eligibility for program
The following questions are asked for verifying the eligibility for the emergency payday loan program. Whether the applicant has a checking account? Whether the applicant is paid by direct deposit? Whether the applicant has a steady income? Whether the applicant is dependent on somebody who is employed by the branch of U.S. military? Further, the net monthly income is asked. The number of outstanding payday loans has to be entered. The last field is of the desired loan amount.
Personal information
The personal information to be disclosed in case of an emergency payday loan is as follows. First, the first name, last name and email have to be entered. This is followed by the address, city, state and zip code. The number of years and months at the residence has to be input. The type of residence has three options – whether you own a home or it is by rent or any other method.
Advantages
An emergency payday loan is a good method for speedily and easily borrowing cash when one is trapped in an emergency and does not have any other financial option. For instance, a payday lender may be required for instantaneous and temporary economical requirements like a medical bill or car repair or other one time expense. The emergency payday loan is useful for those who do not have savings or credit cards. These loans do not need any credit check. Hence, they are useful for people who have economical problems.
Disadvantages
It is very important that an emergency payday loan is repaid as quickly as possible. Those who fail to repay this debt on the due date get into tremendous trouble. They are charged additional fees that are exorbitant. If one gets trapped in the payday loan cycle for a long amount of time, this can cause huge economical problems. The reason is that the emergency payday loan is a much more expensive method as compared to other alternatives of borrowing. In a majority of cases, the annual percentage rate in case of an emergency payday loan is on an average about 400 percent. However, this annual percentage rate can at times be as high as 5,000 percent. As compared with these figures, the annual percentage rate of a credit card is around 12 percent and of a standard loan is almost 7 percent.
