In order to qualify for a cash payday loan, the eligibility factors are:
· You must be 18 years or older, and be a citizen of the US.
· You must have a valid account.
· Your pay stubs must show that you have been regularly employed in the past 3-6 months.
· Your income must be at least $1,000 per month.
· There are no bankruptcy cases against you.
The disadvantages of payday loans are its extremely high rate of interest. Typically they range from 300% to 900%. If you opt for a pay day loan, you are likely to end up spending more to pay it back than what you’ve originally received and anticipated. The time period to pay it back along with the interest is less and soon you fall into a debt trap.
According to financial analysts, payday lenders exploit your financial difficulties to rake in high profits. Often these lenders target their services to people with less income. Borrowers often overlook the high APR that where they eventually will have to extend the loan repeatedly and pay increasingly extra fees every two weeks, or so.
It is equally important to calculate whether you can repay the loan within a definite time period. If you can't repay the loan within the specified time period, you have the option to extend the loan, which leads to more interest. Always search for a reputed lender you can deal with, or else the lender may want to cash your check before the agreed date of payment. An additional fee follows suit if your check bounces due to lack of sufficient funds.