Main Features and Pecualiarities of Payday Advance Loans
Every person sometimes has situations when a small amount of money is required before the salary. To solve such problems, special financial programs were developed. A payday advance loan is one of the most frequently chosen options. A particular advantage of such a loan is the ability to take the required amount of loan almost instantly: the time from placing an application to receiving money on a card usually does not exceed 10-15 minutes.
Can You Be Approved for a Payday Advance with Low Credit Rating?
Further processing of the application is made using a scoring program that processes the information received and checks the borrower according to different parameters. Scoring program settings for each lender can vary a bit. As a rule, payday loans are approved without a hard credit check. A loyal way of lending is what many borrowers appreciate. Thus, even a person with a damaged credit history, who will not be given a loan, can get a loan if he contacts the bank. That is why such loan programs are popular with people who want to improve credit history. The scoring check rarely takes more than 10 minutes. According to its results, the borrower receives an SMS with the decision to get a loan. A loan online is transferred within 5-10 minutes.
How Does a Payday Advance Differ from a Bank Loan?
When getting a loan online via the Internet, you may encounter some features of this loan product that require attention and consideration.
- High lending rate. By issuing a quick loan online under a simplified scheme, without proof of income, guarantors, collateral, the lender exposes himself to financial risks of non-return. A high lending rate helps compensate for these risks and allows loans to be issued to a greater number of applicants.
- Small credit limit. The limit for remotely issued products does not imply large amounts of funding. This allows the lender to protect themselves from possible defaults. As a positive rating accumulates and a good credit history is formed, financing limits for specific borrowers may increase.
- Short crediting period. On the one hand, this is inconvenient, since the payment of the loan involves the repayment of the debt maximum within a month. But on the other hand, a short crediting period avoids a large overpayment at an interest rate.
- Serious sanctions against debtors. Non-payment and delay are extremely undesirable. The failure to fulfill obligations to the creditor and the delay in payments entails financial penalties for the borrower involving the charging of a penalty that seriously increases the amount of the debt.
Its speed and availability makes this kind of financial help the most popular one. But keep in mind its distinctive features when applying.