What is a Payday Loan?

A payday loan is one of many different types of loans available for consumers in need of cash. These loans have been used for many years, but not without plenty of criticism. However, when put into perspective, these loans are actually beneficial to those who are unable to obtain a traditional loan due to bad credit. The loans are easy to apply for and receive, with money in hand the same day in many  cases. Both online payday loans Houston TX and those available from local lenders are available.

What do you need for a Payday Loan?

There are only a few requirements for obtaining a payday loan.

  • You must be at least 18 years of age
  • You must be a U.S. resident
  • You must have a job or other source of regular income
  • You must have an active checking account

You will be asked to provide verification of the above information. A drivers license or a photo identification is required as well. If you meet the requirements, your loan specialist will inform you of the loan approval amount and provide you with cash as well as a contract to sign. You’ll need to write a post-dated check to the loan company. They’ll hold onto this check until your repay date.

How to Repay a Payday Loan

Repaying a payday loan is easy because you do nothing! The payday loan company deposits your check on the date of the check. The money is then deducted from your account. There is an interest fee that is charged for this transaction. This amount varies from one lender to the next.

Do not let the negative attention surrounding payday loans Houston TX persuade you to turn your cheek the other way. These beneficial loans may be exactly what you need when financial woes strike.