What is a Payday Loan?
A payday loan is a short-term unsecured loan. The amount for payday loans ranges from $100 to $2500. Interest rates are considered high for payday loans when calculated annually. As the term for payday loans is from 31 to 35 days, interest rates do not ruin a borrower’s financial stability.
What Are Payday Loans Meant for?
Financial trouble is sometimes challenging to take on without an extra helping hand, and with a payday loan, you can be sure to accomplish financial goals such as
- Car repairs
- Medical bills
- Unexpected expenses
- Short vacation.
While many people keep emergency funds to overcome difficult financial situations, many others are not able to allocate a significant amount of their salaries aside. This is when payday loans rush to help.
About 2nd Chance Payday Loans
Second chance payday loans are meant to give people an opportunity to get a loan even if they have bad credit or have been denied before. When you are out of options, second chance payday loans are extra opportunities to get through your money issues.
Second chance payday loans are short-term solutions you need to cover a bill or an unexpected expense before your next payday. These loans are called “second chance” as they are intended for borrowers with poor credit history, who would most likely be unable to qualify for traditional financing.
Borrowers can obtain money by making regular payments to repair their credit history. These loans usually come in smaller amounts, up to $500, and are offered by lenders who specialize in short-term, high-interest loans.
The interest rates are considered high for second chance payday loans; thus, they should be paid off as quickly as possible.
How to Apply for a Second Chance Payday Loan
When you choose the website that provides a network of second-chance-payday-loan lenders, you should submit a loan request at any time of the day or night and receive a loan decision within minutes. As the lenders review your case simultaneously, you may receive multiple loan offers to choose from, each with its loan term, interest rate, and monthly payment. When you select one, you should complete an online loan application and have your money directly deposited into your bank account.
What Info Does the Application Require?
As common payday loan applications, second chance payday loan applications require some personal information, including name and surname, date of birth, home address, phone number, email address, social security number, government-issued ID, income source, and an active checking account.
Applicants must be at least 18 years of age, have an active checking account, provide proof of employment, and have an income of at least $800 per month. Note that lenders may have additional requirements for loan approvals.
However, second chance payday loans are unsecured loans, meaning that the borrowers do not have to bring collateral against the money. The only guarantee for the lenders that the borrower is able to pay the debt back the proof of employment and an income source.