In our time, a rather familiar situation comes when there is no money left, the salary is not soon, and you need to survive a couple of weeks. We attribute everything to unforeseen circumstances: a friend’s wedding, car breakdown, illness of loved ones, and other troubles.
At such a moment, the thought comes to take advantage of payday loans for a payday loan company. This is the most effective way to make quick money even with a bad credit score. You can usually get payday loans through online organizations or any branch in your city. But there are probably only a few legitimate payday loans companies online which can be actually beneficial.
Where to Get Payday Loans?
Family and Close Friends
Initially, the thought comes first to borrow the required amount from friends or family. But you don’t want to spoil the relationship and blush if you can’t pay off on time.
Pawn Shops Assistants
The good old pawnshops are happy to help. Still, getting payday loans would be the best option. The fact is that cooperation can end with unpleasant consequences because moneylenders are notorious.
Banks and Non-Profit Organizations
Borrow funds from the bank. This can be a very long process. While you collect the documents, find guarantors, and pass the checks, the need to get payday loans may simply disappear.
Payday Loans Online
Fortunately, we live in a time when almost everything can be done without leaving home even borrowing money before paycheck online. If purchases can be made via the Internet, what prevents us from taking out a loan in a similar way?
Taking out a payday loan is now easier thanks to verified lenders. Many organizations on the Internet offer the required amount in just a few minutes online.
Who Can Get Payday Loans?
- Major persons over 18 years old;
- Persons with debt on a loan from another bank or MFO.
How Do Pawn Loans Work?
Unlike payday loans, a pawn loan can be a quick way to borrow money. Moreover, it doesn’t require a credit check or an application process. The amount of your loan depends on the value of your mortgaged item.
For example, if you have any item of a well-known brand, you can bring it to a pawnshop. A broker can determine its value. After determining its value, the mortgagee can grant you a loan without exceeding the assessed cost of the item.
The terms of pawnshop loans vary and often involve high-interest rates. This is why some states have intervened to regulate the industry.
If you move forward with a loan at a pawn shop, you can get your money right now. Typically, you will need to repay the full amount of the collateral loan to return the pledged item. Although the time it takes to repay the loan may vary from state to state.
For example, In Florida and North Carolina, state laws dictate that pawnshop loan agreements are 30 days with an additional grace period. According to the National Association of Pawnshops, the average pawnshop loan in the United States is $150.
Reasons to Choose Payday Loans
Free of Charge
It is profitable to take a payday loan before the payday on the card for a number of reasons. First, it can be done for free. Payday loans at 0% are issued by the majority of lenders to new clients on two conditions:
- The term does not exceed 30 days;
- The price is agreed between both sides (borrower and lender).
It is Fast
When you need to take payday loans urgently, classical financial organizations do not consider documents to give a decision. Microfinance organizations do things differently. Several minutes pass from the moment the application is submitted to the receipt of funds on the card. They accept requests for help 24/7.
Forget about certificates from the place of work, a crowd of guarantors, an extract from the housing office, and any bureaucratic obstacles. You will need a passport of a citizen and an individual tax number. Bad financial history won’t be an obstacle either. On the contrary, you can correct your credit rating.
Inappropriate Financing Without Collateral
Unlike pawnshops, all property remains with you. There is no need to leave a deposit or explain the purpose of receiving funds. Use the interest-free loan for your pleasure without a report.
You Can Save Your Belongings
The National Association of Pawnshops estimates that nearly 80% of all collateral loans end up being paid off. But there are places in the country where the percentage of collateral received is much lower. This means that many people who give away their belongings in exchange for quick money cannot get them back. Ask yourself: “Is it worth risking heirlooms for a small cash loan?”
Getting payday loans can also occur to you if you are in a difficult situation. But it is financially risky if you are not sure that you can pay back on time. Payday loans are usually given in an amount of $ 500 or less and are usually paid on the next payday. Depending on the state, companies may be allowed to charge $10 to $30 for every $100 taken, plus hefty commissions if you can’t pay off on time.