Managing your finances can be tough at times, and it’s not always smooth sailing. When you’re faced with a crisis, sometimes your savings isn’t enough either; and if you need the money ASAP, what do you do? Times like these can be hard to overcome sometimes without the help of outside financing, so some people turn to a payday loan to get them through. If you want to find out more about payday loans, keep reading and discover the types that are available.
What Is A Payday Loan?
Before getting into the different types of payday loans, it’s probably best to know what they are. Simply put, a payday loan is a type of finance that your borrow for a short term and they typically have quite high interest rates. You can’t normally borrow as much from payday loan lenders either, as they’re expecting the full amount to be paid back quickly.The higher amount you borrow, the riskier it is you won’t be able to pay it back. These loans are usually supposed to be a sort of advance on your wages, as you’re promising to pay it back by your next “payday”. This means you’ll end up paying it back in around 30 days’ time in a lump sum that includes interest. Now let’s get onto the different types of payday loans out there.
Instant Payday Loans
Instant payday loans are probably favoured by most people looking at getting this type of finance as the whole process is super-fast. Once you complete your application form and it’s approved, you can receive the funds almost instantly. These can be useful if you need emergency funding,and you can’t afford to wait the time it would take for a standard one to be approved and processed.
Bad Credit Payday Loans
Previously, people with a bad credit score may have found it near impossible to access finance options like these. However, you can now find payday loan lenders that will consider and allow people with bad credit to borrow. You may find that the lenders offer these as a separate loan entirely, so make sure that if you know you’ve got a low score you apply for the correct one. You should also be aware that the interest on these loans can be even higher. This is because lenders will see your request as a high risk due to the low score. These loans are also unsecured, which means you won’t need to have some form of collateral to be considered.
Same Day Payday Loans
Another loan that has a quick turnaround is the same day payday loan. The application process is usually completed online and is processed, and a decision is made normally within the hour. Once approved, then you can expect the funds to go into your account on the same day. Again, these can be helpful if you need the funds sooner rather than later and can’t wait until your next payday.
Payday loans aim to help people in sticky situations, who without them might end up in a crisis. Although they do have higher rates of interest compared to other loans, you are able to receive your funding quicker and pay it off sooner instead of having the debt drag on for years. Payday loans can normally be applied for online too, so you don’t even have to leave the house or pick up the phone. If you’re thinking of taking out a payday loan, make sure you do your research and choose a reputable lender.