Every single parent in need of cash feels that the options for borrowing money are limited. Well, this is not completely incorrect. If you are a single parent who is working part-time and is not earning enough to meet the minimum income criteria of most lenders or are not eligible for personal loans because of work and income benefits, it is obvious to feel out of options. However, there are short-term loans like payday loans that most individuals forget to consider.
How Do Payday Loans Work For Single Parents?
Payday loans are short-term loans that offer borrower an opportunity to take care of their temporary financial situations. You can borrow any amount between $100 and $2,000 for a period of 2 days to 6 months. The repayment time is small, but it works for individuals with a steady income.
Nevertheless, you have to keep in mind that since these loans are easy to acquire, the interest rate is a bit higher compared to any standard loan. So, ensure you can meet the repayment requirements before applying for a payday loan.
Fortunately, there are many lenders and even introducers like Complete Loan Solutions with whom plenty of lenders are associated. You can compare different loan options, and expect to acquire the best interest rate. You can apply for these loans online, and thus the procedure is much faster. Mostly, you can expect to receive the money on the same day.
What If You Have A Bad Credit History?
Most lenders will consider your application even if you have a bad credit history. The thing is, lenders offering payday loans only have one major criterion – the borrower must have a steady income. As long as you can prove that you receive a regular income, you are eligible to apply for a loan.
Finding The Right Loan Among Plenty Of Options
When you are in the middle of a financial crisis, you will be tempted to apply for the first loan that you come across. Well, this is not how it should be. There are a few things that you must consider.
The Amount You Need To Borrow
As a first-time borrower, don’t expect to get a higher amount. Usually, any lender will offer you an amount between $100 and $2,000. However, if you need more, consider standard loan options.
Lenders offering payday loans usually consider your pay frequency and set the repayment schedule accordingly. For instance, if you are paid every fortnight, the loan amount will be deducted from your account every two weeks.
The Overall Cost Of The Loan
Along with the interest rate, there are certainly other expenses associated with any loan. Before finalizing anything, it is best if you check the complete cost of the loan.
How Quickly Do You Need The Money?
Usually, when you apply for a payday loan and it is approved, you get the cash in your account immediately. However, some lenders take longer and transfer the money on the best business day. Depending on your urgency, you can consider the available options.
Applying For A Payday Loan
Provide the following
- Identification details
- Bank statement for past 90 days
- Your employment details
Once your application is approved and the contract is signed, expect to receive the money immediately or on the next business day.
To summarize it can be said that payday loans are extremely easy to acquire, and thus they will mostly suit your requirement. However, do keep in mind that they are a bit expensive.