The straightforward answer would be yes.
Perhaps, you can avail of online payday loans, regardless of your credit score or history. However, the noteworthy point here is that there are several other factors that online payday lenders consider before giving out a loan.
This article would serve you with all the necessary information that you need to decide whether you should take out a payday loan or not.
Although you can go through the tips from oddee on finding the best online payday loans for bad credit, you still need to know how exactly they work.
And thankfully, we are here to help.
Who decides the value of a payday loan?
You might already be aware that payday loans usually range from $100 to $2500 if you meet the criteria.
But, what you might not know is that the value you’re eligible for does not necessarily have to be the upper limit.
Perhaps, there are instances where you might be able to take a higher loan. Similarly, there could be contrary situations as well, where you might be eligible for only a $1000 loan.
Your eligibility usually depends on your income and monthly expenses. The lenders usually offer up to 25% of your monthly income.
However, you can expect to receive a higher amount if you can place collateral with the lender. It could be anything from your car to your home, and so on.
What is the term for payday loans?
As the name suggests, payday loans are usually ultra short term personal lending options. Regardless of the amount you borrow, the typical term for a payday loan extends from 1 week up to a month.
Since these loans are generally sought to meet monthly expenses or emergency needs the amount is already short for the loan.
And for the very same reason, the term of a payday loan is also kept short. However, noteworthy is the fact that these loans are to be repaid one-time.
Where to apply for online payday loans?
Another obvious reason you might be looking for a payday loan online is that they are very conveniently available. Nonetheless, you still need to find a lender that could fit all your needs.
To put this into perspective, looking for a payday loan online would return you with private portals and money lending networks.
Now, of course, applying for your loan with a private lender would be the best, but to know which lender is the best of all, you should look for a money lending network.
To your surprise, these networks do not offer loans themselves but instead help connect users with the lenders. And thereby, giving them an opportunity to compare different plans and terms offered by private lenders, in a much more streamlined way.
Regardless of the reason, in a nutshell, you can avail of these loans online. However, it is still advised to be cautious with money matters.
You should only borrow the amount that you need and not anymore. After all, responsible borrowing is the key to building good credibility for your personal finances.
Thanks for reading! Let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.