5 Things to Be Known by the First-time Borrowers
It isn’t an unusual thing when you think that you have faced all possible money problems: a job loss, a car fine, the necessity to pay for house rent and, one more misfortune – your computer has broken. Yes, your head is buzzing with all these problems and it is hard not to drive crazy as you know nobody to get money from. So, what to do? Is there any effective way to obtain fast money?
Payday loans or same day loans are of a great popularity in the USA and Europe. They help people to overcome financial difficulties and continue living normal life.
If you don’t know what a payday loan is, it isn’t a problem as it is as easy as egg is egg. What is the important info for a person who uses this service for the first time?
5 Steps to a Cash Loan
- Documents are an obligatory condition of getting instant loans. You should display your passport and registered number.
- You need to have an employment history to get instant money. You surely have a purpose of borrowing money and it is something serious in most cases. The history of employment shows that you actually hold a job and are not an impostor and ensures that the money will exactly be paid off.
- If you are under age, you cannot get a payday loan. But don’t be upset. Perhaps, you have an adult friend who can be bail for you. He should have a regular job to prove that he is a serious person who can give the borrowed money back and clear all expenses. What kind of expenses you may ask. Read the next paragraph attentively. It’s the most important in borrowing quick money.
- Learn more about fees. Don’t think that you get money and pay nothing for their usage. The percent depends on the company lender. If it is fair and intends to have a good reputation, your fees will not look like a robbery. Consider the following example: if you take 200$ for fortnight, the amount of overpay will be about 15-20%. It means that you will have to return 230-240$. On the one side, it isn’t beneficial. The fee is too large, but on the other, you need money right now. Therefore, be ready to lose some money when you go in to pay back your loan. Bear in mind that 15-20% isn’t an exact figure. It may considerable vary, but the algorithm is the same.
- Then you get your money. It is also possible to get a payday loan by phone or online. However, this method works if you ask for a civil service’s help. If it is a private company, you will have to send them your documents and wait for some time until they make a response.
There are 24/7 payday loans. It is very convenient as you can get money even at night irrespectively the day (you know that most banks don’t work on holidays and it causes certain discomfort to people who urge money).
Why Do People Take Payday Loans? 2 Main Motives
Of course, one can name dozens of reasons why people take cash loans and lose their money, but it is worth saying that there are 2 main reasons of instant loan popularity:
- Bad credit history. A payday loan for people who can’t get credit is a real redemption. Most people in the USA have taken money for credit even once in their life. To tell the truth, they do it constantly. Buying a car or a house, a new refrigerator or a vacuum cleaner can be costly to a family. It is also a common thing to forget to pay fees for your credit. Sometimes people just haven’t money for doing it and pay too late. Their credit histories are spoiled. Luckily, these mistakes can be forgotten in 10 years. So, if you have a bad credit history, you can get a payday loan as such services don’t take into consideration your debts and other credits.
- Misfortunes. Just imagine someone gets ill and needs money for surgery or expensive medications. It is good when his relatives and family are kind to help him. But what to do if he live alone? He has to take a payday loan.
Summing up it is necessary to say that lenders always have a good profit from each payday loan, borrowers often confess that they have done a mistake by taking quick loans, some people even get secret payday loans and return money secretly, so their relatives don’t know about it. The main thing is to think thoroughly whether you really need money right now and turn to reputed offices only if you don’t want to be cheated.