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Friday, September 1, 2017

Some Misconceptions about Short Term Loan

Some Misconceptions about Short Term Loan
Short term loan or payday loan is regarded as a good source of emergency cash for people with a bad credit score. People with a poor credit rating have very little options open to them for arranging cash in emergency situations other than taking help from loan sharks who charge exorbitant interest rates and heavy penalties for defaulting. It is a great relief for people with bad credit to have access to payday loans that help them in times of serious financial crises.
You could borrow the required amount quickly to come out of the sticky situation. Many people have certain misconceptions about payday loans or short term loans. Here are some of the misconceptions people entertain about short term loans.
Misconception: My requirement is not too great so I would be refused.
Fact: You are mistaken. Payday loans do not necessitate stating any reason why you are in need of the loan. Nobody would even ask you the purpose of taking the loan. There is no regulation or law that compels you to state the reason why you need the loan or tell anyone where you would divert the loan amount. You could use a short term loan for paying your child’s school trip, for a wedding, or a vacation. You could even blow it away in any bar or buy groceries. Nobody is interested to know why you need the emergency cash.
Misconception: I cannot repay next payday. As such, am not entitled to a payday loan.
Fact: You are wrong again. You have the option of rolling over the payday loan you have taken out and pay it on the payday after the next one. That would be costing you some additional fees but you could get the short term loan.
Misconception: My credit report is pretty bad. I will not get a payday loan due to poor credit score.
Fact: You are absolutely wrong. Most payday loan lenders do not even bother to check your credit score. Anyways payday loan for bad credit is available for getting emergency cash. Your credit score is not important. Sometimes, the lender may just see the score for calculating and setting your fee.
Misconception: I do not have a house or even a car. I have nothing to offer as security hence no loan.
Fact: You are wrong again. In such a case, your regular salary is your security. If you do not repay then the lender could consider getting a court order against your salary, and your employer would need to pay the lender fully before they consider paying your salary.
The Most Important Query: I have no bank account or any job. Obviously, I won't be getting a payday loan. Will I?
Fact: No you will not. Your paycheck and your job are the security provided by you for repaying the loan. Moreover, the loan amount is transferred to a bank account. As such, you  cannot get any loan without a bank account. However, you could get a secured loan on any valuable object, such as your house or your car but not any unsecured loan. Most unsecured loans seem to be secured against your job and income. Your employer would require paying the payday lender before paying you.
Conclusion
Many people are grateful to payday loans because they help you out of financial crises by providing emergency cash. They are the most effective way of getting fast emergency cash.
Author Bio: Ricky Stevens is a loan consultant attached to a private agency. He runs his own blog where he discusses various types of loans including payday loans for bad credit, tips for taking a loan, etc.

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