A payday loan is a short-term, small-dollar loan, usually due on your next payday. These loans are designed to provide you with the cash you need to get through until your next payday (hence the name). If you’re considering getting one, read on to learn what you need to know about payday loans and how you can use them responsibly.
How to Qualify For A Payday Loan
Think of it as a personal loan. But instead of applying for one at your bank, you go to a payday lender — typically an online company or storefront payday loan place near where you live. To qualify, you usually need to make at least $1000 per month and have some sort of steady income (for example, you can’t be getting welfare benefits or have been on disability for more than five years). You’ll also need to prove that your income is real. In most states, lenders will do a credit check. In some cases, they may even ask for pay stubs or letters from employers confirming employment status and salary amounts.
The Amount of Debt You Need to Qualify
Payday loans aren’t personal loans—they are lines of credit. Payday lenders are strict about how much money you can borrow so they can make sure they get paid back. They want to make sure that you have enough other income coming in to cover your payments back to them. The amount you qualify for is largely based on how much debt you already have and what kind of debt it is.
How Much Will My Monthly Payments Be?
Payday loans typically have lower interest rates than personal loans, so you should expect to pay less each month for your payment. The size of your loan, as well as your credit score and repayment history, will determine how much interest you’ll pay. It’s possible to get approved for a payday loan with bad credit, but your monthly payments could be higher than expected due to higher interest rates.
Are you looking for an online short-term payday loan to help you get you out of trouble? You’ve checked all other lenders and they’re not willing to lend you any money. Mark Credit makes a promise to do everything we can to get you set up with a loan that is right for you – no matter your credit score. If you’re ready to get your loan, Apply Today.