Payday Loans are Not Based on Credit

Money is tight for thousands of people these days. Many people are losing jobs and taking reductions in salaries and hours worked. Because of this, thousands of people are also finding themselves in financial emergencies that seem to offer no way out. Banks take months to approve some loans, and if you do not have great credit, you are likely to be denied for a loan. Banks also have minimum loan amounts far higher than many people need. For people in this situation, payday loans are an excellent solution.
Payday loans are not based on your credit rating. Anyone with a bank account that has been open long enough and who has steady employment and a high enough income can apply for and receive these loans. People who are paid by the government, such as the military and those on social security also qualify for the loans.
Payday loans are designed to help people borrow a small amount of money to meet an urgent financial need. This can be to purchase food, medicine, or other necessities or even to pay a bill that can result in loss of services or property. The lenders will not ask you your reasons for taking out the loan, but because of the associated fees, the loans are not recommended for everyday shopping.
Payday loans charge a one time fee for the loan. This fee is automatically debited from your bank account when the principle of the loan is debited. This single payment is all that you will ever pay on the loan, and it is considered a cash advance. The benefit of these loans, however, is that they are reported to major credit bureaus as a loan that has been repaid, and there is no mention that they are payday loans or bad credit loans.
Many people are helped by payday loans every day. The loans offer a financial solution to all people who meet the basic criteria, no matter what their credit score. This means that anyone in a financial crisis can apply for a payday loan to find a solution. Payday loans are an excellent option for many people in an emergency, regardless of whether you are on social security or are working two jobs. If you find yourself in a financial crisis that could have a significant negative impact on your life, a payday loan may be the best way for you to minimize the impact the crisis has on your life.