1. Why payday loans might save you from financial distress
Managing your salary every payday is a common strategy to pay off accumulated monthly bills and daily
expenditures. However, on unexpected and emergency cases, setting aside certain amounts may not
work especially if those emergency cases involved a lot of money that may break your planned budget.
Suddenly, your salary may not seem enough and there’s no one or nowhere else to turn to. Only a
limited source of income sustains your living and is the only way you can get the money you need. In
situations like these, a payday loan may be the only solution your problem but what exactly is it and how
is it going to help you?
Payday loans are simply small amounts of cash you can borrow on a short term basis from certain loan
companies that addresses emergency situations. This type of loan is usually unsecured and does not
require you to provide any form of collateral. Upon application, however, the borrower must provide
true and legitimate information as proof of employment so that the company will acknowledge the
applicant’s capability to return the loaned amount on the next payday.
Advantages of payday loan
Payday loans are usually processed immediately. The online application would only take minutes and
approval doesn’t even take hours since companies only need to review your proof of income. They do
not pry on the personal reasons of the borrower as to why they needed the loan. A bad credit score will
also not affect the approval of your loan since it is only short term and they solely decide on the fact
that you’ve met the company’s requirements. There are no hidden and upfront charges as well.
Who can apply for a payday loan?
Employed individuals aged 18 and above with his or her own bank account, a valid phone number and
proof of income are usually the only requirements companies consider mandatory. Some companies are
requiring a fixed minimum amount of salary for those planning to apply for the loan.
Is applying for a payday loan complicated?
Pay day loan application is not only fast but also very easy. One factor that makes it simpler than brick
and mortar institutions is that most of these companies are online. You will only need to fill out basic
personal information and employment information and minutes after the application, you will be
contacted either by phone or email if your loan has been approved or not for whatever reason. To
safeguard the interest of both parties, the borrower may only be allowed a certain amount based on his
or her salary and as it can become costly, it is advisable that the borrower to only ask for what he or she
needs.

2. What potential applicants should keep in mind
Risks of scams are rampant on the Internet these days so potential borrowers must be vigilant when
picking out a good loan company. These companies are subject to the strict laws within the finance
sector of the government they’re operating in. Under the Consumer Credit Act of 1974, lenders from the
United Kingdom must be licensed to operate and should have received permission from the UK Office
of Fair Trading. In the United States federal government, the Consumer Financial Protection Bureau was
tasked to regulate big and small lenders in certain states that allow payday loans. So, if one is to be safe
from possible unfair charges from your lender, the loan company chosen must be first checked if they
are properly licensed.