It is a known fact that over 50 percent of the population in the US lives from one paycheck to another. Due to this we are hardly able to save any money for a rainy day. Thus, when any kind of sudden expense arises, we are wanton for cash and begin running from post to pillar to arrange for the required emergency funds. One of the best options in such situations is to take out a payday loan.
There can be different kinds of emergency expenses that can arise at any given point in time. A kitchen appliance may have gone kaput and need repairs; someone in the family may have unexpectedly taken ill and need medical care; your car may conk out leaving you in dire need of $400 or more for car repairs; or you may have to suddenly travel someplace to meet people for business or personal reasons. All these expenditures cannot be foreseen and if you do not have sufficient savings, then you would need to arrange for funds through the different avenues available at your disposal.
There are different kinds of loan options that are available for borrowers in their times of need. You can take a loan from banks or credit unions; you can visit a pawn shop; or try different online lenders. However, each of these options has some kind of hurdle or the other. Banks and other traditional financial lenders do not offer loans to people with bad credit, while pawn shop loans require a security or collateral to be deposited with the shop owner.
In such a scenario, the best choice for borrowers in need to emergency can is payday loans. You can take out a 400 Dollar Payday Loan to pay for car repair without having to furnish collateral or good credit history. These loans can be availed on the basis of your income source/paycheck. Also, they have a really fast rate of approval provided borrowers meet the payday loan lenders basic qualifications.
Eligibility criteria for payday loans
Irrespective of whether you are opting for a 400 Dollar Payday loan or an amount that is less or more than that, there are just a few criteria that borrowers need to meet to be able to avail of payday loans.
A few of these criteria are listed below:
- You must be 18 years or older, a resident of the US, holder of valid identity proof, and other personal identity proofs.
- You must have a regular source of income with a regular paycheck. Such an income source need not necessarily be from work. It can also be a regular disability check, unemployment aid, etc.
- You must have a valid operating bank account. Borrowers may need to authorize the lenders to directly take money from your bank account, via bank transfer, on the date specified on the 400 Dollar Payday Loan contract as repayment for the loan.
Things to keep in mind
Even though 400 Dollar Payday loans can help you tide over emergency monetary expenses, borrowers need to keep a few things in mind before signing on the payday loan agreement.
Payday loan lenders do not seek collateral nor do they carry out a credit check. Their main criterion to lend is a regular paycheck. Since the qualification requirement is so low, payday loan lenders often charge a high rate of interest to mitigate the risk associated with loan. The APR (annual percentage rates) can be higher than 45 percent in some cases. Hence, you will need to be really careful when taking out a 400 Dollar Payday loan for emergency use and later ensure that it is repaid on the stipulated date. This can help avoid any exorbitant penalty fees, charges, and higher interest rates.
If you fail to repay a payday loan on the specific repayment date, then the additional charges and hike in interest can make the original loan amount balloon into a big amount. Subsequently you may need to take out a new loan to repay the old loan, resulting in you falling into a vicious cycle of debt trap.
Do not use the 400 Dollar Payday Loan (or any other payday loan) for any purpose other than the one that it was initially intended for. Thus, if you had taken out the loan for car repairs then use it for that purpose and not for something else, especially for frivolous activities like shopping for dining out, etc. Making sure that you use the money for its intended purpose will keep you in check with reality and contribute as a reminder that you have to repay the payday loan.
Payday loans are indeed one of the best sources for fast emergency funds. Borrowers need to be prudent while using it and only then would it be a successful outcome for both.
Here’s a quick list of state regulations published by the National Conference of State Legislatures.