When deciding if you want to apply for a loan, there are several things to consider. For instance, what type of loan do you need? How much money do you plan to borrow? Do you fit the criteria for a personal loan, or is a payday loan from direct lenders something you should apply for?
What kind of terms do you need, i.e. interest rates and payment schedules? Does the loan you’re interested in provide a refinancing option?
When deciding on a loan, these are all questions you should ask yourself before applying. After all, not all loans are created equal, and if you don’t apply for the right one, you could be denied or end up with a loan with terms that you can’t easily abide by. Doing your research is key.
Many people prefer payday loans to larger, bank-held personal loans because they’re easier to apply for and have looser criteria (for instance, payday loans often work with those who have bad credit and less solid employment history; they also offer easy refinancing options and can offer you money same-day in most cases).
Because they’re easier to get approved and go much faster than bank loans, many people choose to do these. However, payday loans often have high-interest rates and you run the risk of losing your collateral if you default, so you must be able to make your payments on time and stay in contact with your lender if any emergencies arise.
Most payday loans do require you to have a bank account, so keep that in mind.
Personal loans via a bank are more secure, and can often offer you much more money (if you need to borrow a large amount this is your best bet). Interest rates are often lower, too, however, the criteria are more strict. You’ll need to have decent credit, solid employment history and a steady bank history as well (no overdrafts or negative balances).
Whichever type of loan you choose, often the application process is quite easy and can be done online. Finding out your approval status is generally quite quick, though you may be asked to provide documents before you get your money (pay stubs, banking info, your credit score, references, and more).
Have all of this info at the ready before you apply to make the process quicker. Generally, you’ll see your funds in your bank account or given to you in the form of a check very quickly after approval. The entire process is quite easy and no-fuss.
Whether you go for a personal loan, a payday loan or some other type of loan, applying is easy and you can likely get approved for those emergency funds that you need, so long as you do your research and apply for the proper loan for you. Get all your ducks in a row before you apply and you’ll be golden. Best of luck!