Hard times and emergencies hit everyone. Cars break down, appliances need repairs, and doctor visits are unavoidable. These situations are unplanned and unavoidable and usually these emergencies require cash that you simply don’t have. Getting the money you need last minute can be stressful and difficult. Getting that money fast and without extreme hassle is possible with savings account payday loans. These loans are quick. With savings account payday loans you get fast approval and you can usually have the money within 24 hours of applying.
How Savings Account Payday Loans Work
Like all payday loans, savings account payday loans are short term loans that must be paid back in full. Traditional payday loans require the borrower to leave a post dated check with the amount of the loan that can be cashed in case of failure of the borrower to pay. With saving account loans your money is taken directly out of your account, so there is no need to go anywhere to apply or get the cash. Many lenders have a fast online application process and instead of picking up the cash, the money is deposited right into your bank account.
The Convenience of Savings Account Payday Loans
In the moments you need cash, you are not always in a convenient place to get it. Luckily, saving account payday loans are usually applied for online. This has recently become a very popular way to apply for a payday loan because of the convenience. With online services you can apply for the money you need from the comfort and convenience of your own home at any time of day.
These loans also involve less procedures and requirements than other loans. This makes receiving these loans quicker than other loans and easier to qualify for.
How to Apply for a Savings Account Payday Loan
There are only three basic requirements you will need to apply for a savings account payday loan. You must be at least 18 years of age, have a bank account, and a steady income.
Most lenders will require proof of the previously mentioned requirements in the form of an ID, paystub, and bank account information. Some lenders require this information to be faxed to them, but there are also faxless payday loans that do not require copies of this information. It should also be noted that not all lenders require the same information, so be prepared for slightly varying requirements.
After you are approved for the loan (which usually takes only a few minutes) the money can be transferred directly to your account. How long it takes for the money to show up in your bank account depends, but can often take less than 24 hours. The amount of time depends on the time of day and whether it is a weekday or not. On evenings and weekends it usually takes longer for the money to show up in your account. When applying during a weekday you can have the money available in a couple hours.
Paying for a Savings Account Payday Loan
With saving account payday loans you agree to pay back the loan by a certain date (usually the day of your next paycheck). Instead of making the payment yourself, the money is directly withdrawn from your personal account and paid to the loan lenders. This makes paying the loan easy as you do not need to remember the date of the loan payment, and takes no time on your part to pay the loan. With this it is important to remember to have the money in your account the day the loan payment is due.
Savings account payday loans are short term loans, and need to be paid back in full upon maturation of the loan. Because these loans are short term, repayment for these loans is due in full and not made in installments. This should factor into how much you borrow as the full amount borrowed plus interest will need to be completely repaid by the agreed upon date (usually within a month of taking the loan).
It is important to remember to make sure you have the full amount of the loan in your account on the date that the loan is to be repaid. Failure to have the full amount can lead to overdraft fees from your bank and ultimately higher interest on the loan.
Interest on savings account payday loans is considerably higher than traditional loans. It can range from 10-20 percent depending on the amount borrowed, the time borrowed, and the lenders own fees and practices.
Savings Account Payday Loans with Bad Credit
This type of loan is also convenient if you have bad credit. With traditional loans banks look at your credit history for qualifications. If you have bad credit getting a loan from a bank can be impossible, but with savings account payday loans almost everyone is approved. This is because instead of looking at your credit history, lenders of savings account payday loans look at your current ability to pay back the loan. You usually show your current ability to pay the loan by showing proof of a regular income.
What to Keep in Mind with Savings Account Payday Loans
Remember that savings account payday loans have high interest and need to be paid back in full. Failure to pay the loan back on time and in full can lead to fees and higher interests. Savings account payday loans are meant for emergencies and quick solutions to situations such as hospital visits, home repairs, and emergencies when traveling. Entering into this loan should be seen as a last resort for a bad situation and not a long term fix.
Savings account payday loans can be an excellent option in situations where you need instant cash, but should be used wisely.