An overnight payday loan provides a means of negotiating a short term financial emergency. It is a poor credit history loan that doesn’t involve credit checks. There are no restrictions on its usage so it can be used for absolutely any purpose. Although banks won’t assist those who have missed or made late payments, a payday lender may be able to help. This is because they use a completely different set of criteria to establish eligibility for a quick payday cash advance loan.
Eligibility for an Overnight Payday Loan
Poor credit history loans don’t rely on credit scoring, they seek to determine whether a quick payday cash advance loan is likely to be affordable. In order to be eligible, the borrower must be a U.S. citizen, at least 18 years old and in full-time employment with a minimum income of $1,000 a month. He/she must also have a bank checking account and be able to provide two forms of identification, one of which must be photo I.D. Provided that the borrower is able to comply, they will be able to get an instant cash loan.
Instant Cash Loan Interest, Fees and Charges
The risk of the borrower defaulting means that an instant cash loan is more expensive. The cost of an overnight payday loan varies between providers, but it typically costs $20 to $25 to borrow $100 for a month. This means that a quick payday cash advance is only available for a single calendar month. Failure to repay the loan on time will lead to further charges and the matter being reported to credit reference agencies.
How a Quick Payday Cash Advance Works
Once eligibility has been established, the customer will need to provide the payday lender with a postdated check that is set to clear when the borrower is paid. The check must be sufficient to cover the principal (original amount borrowed) plus any interest that will accrue. Provided that the application is submitted before 2.30 PM, the money will reach the borrower’s account on the same day. If the application is received after this time, it will arrive the next working day at the latest.
Pros and Cons of Poor Credit History Loans
An overnight payday loan provides the answer to an urgent short term financial need, such as paying the rent or a utility bill. Although it can be taken out for any purpose, it is inadvisable to borrow money for frivolous or unnecessary purchases. Always remember that loans for people with bad credit will leave less money to pay the bills the month after. It is easy to become trapped in a cycle of dependency.