Types of Payday Loans

In an unstable and uncertain economic environment, even good, hard working people can experience financial hardship.  Loss of a job, an injury or automobile accident are events that can financially devastate even those that have diligently saved and prepared.  The embarrassment that often accompanies asking friends and family for loans can be overwhelming for some.  An alternative solution to turning to loved ones in a time of financial need is a payday loan.  Below is a brief overview of some of the types of payday loans that are available on the market. 

  

Poor Credit Payday Loans

This type of payday loan is ideal for the individual that has less than perfect consumer credit.  There is no  credit check required to obtain a poor credit payday loan, which can expedite the application and approval process and result in a faster transaction.

Online Payday Loans

By using the internet to apply for a short term loan through a legitimate online payday lender, a person can reduce the amount of time and energy that is typically required when physically applying for a payday loan in person.  Typically, an application is processed via the internet and the approval process can take as little as just a few hours.  Upon approval of the payday loan application, funds are deposited to the requested bank account.

Military Payday Loans

Military payday loans offer cash to military personnel at lower interest rates than that of traditional payday loan interest rates.  All members of the military are eligible to apply for a military payday loan, however the rates remain the same no matter what rank the borrower holds.

Low Fee Payday Loans

Generally, low fee payday loans require a credit check during the application process to determine credit worthiness and the likelihood that the loan will be paid back in full and on time.  The primary benefit to low fee payday loans are their low interest rates.  Typically, only those borrowers that have good to exceptional credit are eligible for low fee payday loans.    

No Credit Payday Loans

Similar to that of a bad credit payday loan, no credit payday loans do not require a consumer credit check during the loan application and approval process.  Often, borrowers with little or no consumer credit history will be charged higher interest rates as their credit worthiness has not been established by the consumer credit rating agencies.  In these circumstances it is often more cost efficient to apply for and receive a no credit payday loan. 

Paperless Payday Loans

As with online payday loans, borrowers and lenders of paperless payday loans rely on the internet for the application and approval process.  Lenders often use sophisticated software to quickly and efficiently process paperless payday loan applications and deposit funds into the borrower’s bank account. 

Some may consider the use of payday loans an extreme alternative to that of a personal loan from friends or family members.  The fact is, payday loans offer quick cash to those in financial need without having to risk embarrassment and exposure of potentially personal information.