What are payday loans?
Payday loans are short-term financial solutions designed to help individuals with financial emergencies.
These loans rely on the consumer having previous payroll and employment records. They are also offered to individuals with poor credit records.
What makes payday loans popular?
- They offer fast and easy access to cash
- They are more convenient
- Easy qualifying criteria
- Following approval, you can expect direct payment into your bank account
- You can expect quick approval and payment
- The application process is simple
What are the basic requirements for application?
- Valid ID
- An active bank account
- Be at least 18 years of age
- Provide employment details
The information that you provide will determine the amount of money which you can loan from payday lenders. Your affordability will determine the loan amount you are granted as well as the interest rate you get.
One of the most common factors with payday loans are the high interest rates often associated. So is it possible to get low-interest payday loans?
As with any other loan application, it’s important to be able to compare interest rates of different payday loan lenders. You need to do the necessary work to research as many payday lenders as possible and compare the various interest rates on offer. The rise of online loans has created the potential for a lot more low-interest payday loans.
Larger loan amounts often mean larger interest amounts payable, so the lower the payday loan amount you get the greater the chance of you benefitting from low-interest payday loans.
If you have a good credit record, you may qualify for low-interest payday loans. If a payday lender considers you less of a risk, they may offer you lower interest rates.
By establishing a good payment history with the lender you may qualify for lower interest rates with future payday loans you apply for.