A payday loansis defined by its own name. This is a loan that is meant to be held just before the borrower’s following payday. That is not the type of loan isn’t intended to be used to buy things like houses or vehicles. Such loans are meant for folks who have sudden financial obligations and would not have the money until their next pay check comes.
Molly failed to understand that she was behind with her gas bill and she allow it to go past due. She received a shut off notice in the mail and her pay check was still five days away. Molly had seen the advertisements on television and on the radio for cash advance payday loans and she believed it may be her only hope. Molly was stressed. She believed that it had been too good to be true so she started doing her research.
Molly learned that these kinds of loans were generally for small levels of money. Usually between $100 and $1000. Such loans were short term at the same time. They were generally held for between a couple weeks. Because Molly was getting her pay check in five days that worked out nicely for her.
As Molly continued to read, she learned that credit wold not be an problem with this particular type of loan. She learned that there were only a few simple demands which have to be fulfilled by the lendee. The first demand is that the borrower will need to have a provable income. What this means is that the borrower will need to have income which may be checked by the financial institution. By doing this the financial institution understands that the money will probably be repaid. Most forms of income are satisfactory. Wages from a job, unemployment checks, temporary disability checks, Social Security checks, child support checks and Worker’s Compensation checks are acceptable types of income. In addition, there are a few kinds of income which aren’t satisfactory. State welfare checks and Social Security checks in a different individual besides the debtor’s name are just two instances of unacceptable income. Because Molly had both wages from a job and child support, she understood that she’d meet that qualification.